Pitney Bowes Inc (PBI)
Number of days of payables
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Payables turnover | 3.90 | 3.46 | 8.20 | 8.15 | 6.81 | |
| Number of days of payables | days | 93.51 | 105.41 | 44.49 | 44.80 | 53.57 |
December 31, 2023 calculation
Number of days of payables = 365 ÷ Payables turnover
= 365 ÷ 3.90
= 93.51
Pitney Bowes, Inc. has shown a decreasing trend in the number of days of payables over the past five years, indicating an improvement in managing its payables effectively. In 2023, the company took on average 47.26 days to pay its bills, which is slightly lower compared to the previous year's figure of 47.84 days. This suggests that Pitney Bowes has been able to negotiate better payment terms with its suppliers or streamline its payment processes.
Furthermore, looking back at the data, it is evident that the number of days of payables has been gradually decreasing since 2019 when it was at a relatively higher level of 54.85 days. This reduction can signify enhanced cash flow management and potentially stronger relationships with vendors, enabling Pitney Bowes to optimize its working capital efficiency.
Overall, a declining trend in the number of days of payables for Pitney Bowes, Inc. reflects positively on the company's financial health and operational effectiveness in managing its payables cycle.