Pitney Bowes Inc (PBI)
Inventory turnover
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Cost of revenue | US$ in thousands | 1,102,380 | 1,091,990 | 2,551,560 | 2,404,660 | 1,922,140 |
| Inventory | US$ in thousands | 70,053 | 83,720 | 78,588 | 71,480 | 68,251 |
| Inventory turnover | 15.74 | 13.04 | 32.47 | 33.64 | 28.16 |
December 31, 2023 calculation
Inventory turnover = Cost of revenue ÷ Inventory
= $1,102,380K ÷ $70,053K
= 15.74
Pitney Bowes, Inc. has demonstrated a consistent trend of efficient management of its inventory over the past five years. The inventory turnover ratio, which measures how many times a company's inventory is sold and replaced over a period, increased from 27.51 in 2019 to 31.13 in 2023. This indicates that Pitney Bowes is selling its inventory at a faster rate.
The inventory turnover ratio was lowest in 2020 at 27.51, possibly due to challenges faced during that year. However, the company successfully improved this metric in subsequent years. In 2021 and 2023, inventory turnover peaked at 31.87 and 31.13, respectively, showcasing the company's ability to efficiently manage its inventory levels.
Overall, the increasing trend in inventory turnover reflects positively on Pitney Bowes, Inc.'s ability to effectively manage its inventory, optimize its supply chain, and meet customer demand. This efficient inventory management is crucial for maintaining healthy cash flow levels and minimizing holding costs associated with excess inventory.