Pitney Bowes Inc (PBI)

Inventory turnover

		Dec 31, 2024	Sep 30, 2024	Jun 30, 2024	Mar 31, 2024	Dec 31, 2023	Sep 30, 2023	Jun 30, 2023	Mar 31, 2023	Dec 31, 2022	Sep 30, 2022	Jun 30, 2022	Mar 31, 2022	Dec 31, 2021	Sep 30, 2021	Jun 30, 2021	Mar 31, 2021	Dec 31, 2020	Sep 30, 2020	Jun 30, 2020	Mar 31, 2020
Cost of revenue (ttm)	US$ in thousands	1,382,690	1,742,087	2,212,120	2,187,492	2,195,546	2,233,083	2,276,623	2,368,865	2,418,294	2,498,126	2,521,271	2,509,701	2,504,504	2,521,892	2,528,585	2,483,408	2,358,061	2,159,244	2,030,484	1,968,701
Inventory	US$ in thousands	59,836	71,642	76,500	78,683	70,053	83,781	92,783	94,016	83,720	89,946	82,797	87,661	78,588	69,496	67,538	63,680	65,845	66,974	73,653	71,848
Inventory turnover		23.11	24.32	28.92	27.80	31.34	26.65	24.54	25.20	28.89	27.77	30.45	28.63	31.87	36.29	37.44	39.00	35.81	32.24	27.57	27.40

December 31, 2024 calculation

Inventory turnover = Cost of revenue (ttm) ÷ Inventory
= $1,382,690K ÷ $59,836K
= 23.11

The inventory turnover ratio for Pitney Bowes Inc demonstrates the efficiency with which the company manages its inventory. The trend analysis of the inventory turnover ratio over the specified periods from March 31, 2020, to December 31, 2024, reveals fluctuations in the ratio.

The inventory turnover ratio increased from 27.40 in March 2020 to 39.00 in March 2021, indicating that the company was selling its inventory at a faster rate during this period. However, the ratio slightly decreased to 27.77 by September 30, 2022, before increasing again to 31.34 by December 31, 2023. This fluctuation suggests some variability in the company's inventory management efficiency.

By December 31, 2024, the inventory turnover ratio had decreased to 23.11, indicating a decline in the speed at which inventory is being sold. This downward trend may raise concerns regarding potential excess inventory or changing demand patterns for Pitney Bowes Inc's products.

In conclusion, the analysis of Pitney Bowes Inc's inventory turnover ratio illustrates varying levels of efficiency in managing inventory turnover over the specified periods, highlighting the importance for the company to continuously monitor and adjust its inventory management strategies to maintain optimal levels of efficiency and profitability.