Pitney Bowes Inc (PBI)
Fixed asset turnover
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Revenue | US$ in thousands | 2,026,600 | 3,266,350 | 3,538,040 | 3,673,560 | 3,554,080 |
| Property, plant and equipment | US$ in thousands | — | — | 744,288 | 672,364 | 429,715 |
| Fixed asset turnover | — | — | 4.75 | 5.46 | 8.27 |
December 31, 2024 calculation
Fixed asset turnover = Revenue ÷ Property, plant and equipment
= $2,026,600K ÷ $—K
= —
The fixed asset turnover ratio for Pitney Bowes Inc has shown a decreasing trend over the years based on the data provided. The ratio was 8.27 on December 31, 2020, indicating that the company generated $8.27 in revenue for every dollar invested in fixed assets. However, by December 31, 2021, the ratio had decreased to 5.46, followed by a further decline to 4.75 by December 31, 2022.
The absence of data for December 31, 2023 and December 31, 2024 makes it challenging to assess the trend conclusively. However, the declining trend up to 2022 suggests that the company may be experiencing inefficiencies in utilizing its fixed assets to generate revenue. This could be a concern for stakeholders as it may indicate potential underperformance or operational challenges within the company.
Further analysis of the underlying reasons for the decreasing fixed asset turnover ratio would be necessary to understand the company's operational efficiency and identify any areas for improvement in asset utilization.