Pitney Bowes Inc (PBI)
Fixed asset turnover
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Revenue | US$ in thousands | 3,266,350 | 3,538,040 | 3,673,560 | 3,554,080 | 3,205,120 |
| Property, plant and equipment | US$ in thousands | 332,579 | 366,609 | 429,162 | 391,280 | 376,177 |
| Fixed asset turnover | 9.82 | 9.65 | 8.56 | 9.08 | 8.52 |
December 31, 2023 calculation
Fixed asset turnover = Revenue ÷ Property, plant and equipment
= $3,266,350K ÷ $332,579K
= 9.82
Fixed asset turnover is a measure that indicates how effectively a company utilizes its fixed assets to generate sales. In the case of Pitney Bowes, Inc., the fixed asset turnover ratio has been relatively stable over the past five years, ranging from 7.68 to 8.27. This indicates that the company has been efficient in generating sales revenue in relation to its investment in fixed assets.
An increasing trend in fixed asset turnover ratio suggests that the company is becoming more efficient in its asset utilization, while a decreasing trend could indicate potential issues with asset management. Pitney Bowes' consistent ratio around the 8 mark implies that the company has maintained a good balance between fixed asset investments and revenue generation.
Overall, Pitney Bowes, Inc. has demonstrated a strong ability to generate sales from its fixed assets, as evidenced by its fixed asset turnover ratios in recent years. It indicates operational efficiency and effective utilization of fixed assets in driving revenue for the business.