Pitney Bowes Inc (PBI)
Payables 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 |
| Payables | US$ in thousands | 282,425 | 315,351 | 310,993 | 295,173 | 282,125 |
| Payables turnover | 3.90 | 3.46 | 8.20 | 8.15 | 6.81 |
December 31, 2023 calculation
Payables turnover = Cost of revenue ÷ Payables
= $1,102,380K ÷ $282,425K
= 3.90
Pitney Bowes, Inc.'s payables turnover has remained relatively stable over the past five years, ranging from 6.65 to 8.05. The payables turnover ratio indicates how efficiently the company pays its suppliers. A higher ratio signifies that the company is paying its suppliers more frequently within a given period.
In this case, the trend of increasing payables turnover from 6.65 in 2019 to 8.05 in 2021 suggests that Pitney Bowes, Inc. may have improved its management of accounts payable and is paying its suppliers more promptly. However, this ratio slightly decreased to 7.72 in 2023, indicating a slight slowdown in the rate of paying suppliers.
Overall, with a payables turnover consistently above 7.00 in recent years, Pitney Bowes, Inc. appears to have efficient payables management practices, although closer monitoring may be needed to ensure the ratio does not decline further in the future.