Pitney Bowes Inc (PBI)
Activity ratios
Short-term
Turnover ratios
| 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 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| 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 |
| Receivables turnover | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — |
| Payables turnover | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — |
| Working capital turnover | — | — | — | — | — | — | — | — | 50.39 | 32.47 | 26.50 | 49.23 | 22.38 | 24.07 | 20.57 | 17.18 | 14.68 | 9.74 | 6.75 | 7.67 |
Based on the activity ratios provided for Pitney Bowes Inc, we can analyze the efficiency of the company in managing its operations:
1. Inventory Turnover: Pitney Bowes Inc has shown a consistent trend of improvement in inventory turnover from March 2020 to December 2024. The ratio indicates how many times the company sells and replaces its inventory within a specific period. The increase in the ratio over time shows that the company is managing its inventory efficiently, with a peak turnover of 39.00 in March 2021. There was a slight fluctuation in the ratio in the following periods but generally remained at a healthy level.
2. Receivables Turnover: Unfortunately, data on receivables turnover is not available for analysis. This ratio would typically indicate how efficiently the company is collecting on its credit sales, and a higher turnover would suggest effective management of accounts receivable.
3. Payables Turnover: Similar to receivables turnover, data on payables turnover is not provided. This ratio would show how quickly the company is paying its suppliers and can provide insights into the company's liquidity and relationships with vendors.
4. Working Capital Turnover: The working capital turnover ratio measures how effectively a company is generating revenue from its working capital. Pitney Bowes Inc's data shows varying levels of working capital turnover, with a notable increase from March 2020 to December 2022. The significant jump in the ratio from 14.68 in December 2020 to 50.39 in December 2022 indicates a substantial improvement in utilizing working capital to generate sales. However, data is unavailable for the periods beyond December 2022 for further analysis.
Overall, Pitney Bowes Inc has demonstrated efficient management of its inventory and working capital, as indicated by the improvement in inventory turnover and working capital turnover ratios over the analyzed periods. Further insights could be gained with data for receivables and payables turnover ratios in order to assess the company's overall efficiency in managing its working capital cycle.
Average number of days
| 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Days of inventory on hand (DOH) | days | 15.80 | 15.01 | 12.62 | 13.13 | 11.65 | 13.69 | 14.88 | 14.49 | 12.64 | 13.14 | 11.99 | 12.75 | 11.45 | 10.06 | 9.75 | 9.36 | 10.19 | 11.32 | 13.24 | 13.32 |
| Days of sales outstanding (DSO) | days | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — |
| Number of days of payables | days | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — |
Based on the provided data, we will focus on analyzing Pitney Bowes Inc's activity ratios, specifically the Days of Inventory on Hand (DOH) ratio.
The Days of Inventory on Hand ratio helps to measure how efficiently a company manages its inventory. A lower number of days indicates that the company is selling its inventory quickly and efficiently, while a higher number may signify slower turnover or potential inventory management issues.
Analyzing the trend of Pitney Bowes Inc's DOH ratio over the data points provided reveals fluctuations. The ratio decreased from 13.32 days on March 31, 2020, to a low of 9.36 days on March 31, 2021. Subsequently, the ratio started to increase, reaching 15.80 days on December 31, 2024.
Overall, the trend in Pitney Bowes Inc's DOH ratio shows variability in inventory management efficiency throughout the observed periods. Further analysis and comparison with industry benchmarks could provide insights into the company's inventory strategies and operational performance.
Long-term
| 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 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Fixed asset turnover | — | — | — | — | — | 4.55 | 129.19 | 127.83 | 4.75 | 5.05 | 5.46 | 5.53 | 5.46 | 5.47 | 5.54 | 8.29 | 8.27 | 8.23 | 7.82 | 7.96 |
| Total asset turnover | 0.78 | 0.82 | 0.80 | 0.80 | 0.76 | 0.75 | 0.76 | 0.76 | 0.75 | 0.79 | 0.78 | 0.77 | 0.74 | 0.75 | 0.74 | 0.74 | 0.68 | 0.67 | 0.64 | 0.67 |
The fixed asset turnover ratio for Pitney Bowes Inc has shown a declining trend from March 31, 2020, to September 30, 2022, indicating that the company was generating less revenue per dollar of fixed assets during this period. However, there was a significant spike in this ratio in the first quarter of 2023, reaching extremely high values of 127.83 and 129.19. This anomalous phenomenon could be due to irregularities or data errors.
On the other hand, the total asset turnover ratio has been relatively stable over the same period, hovering around 0.7-0.8 range. It suggests that the company was able to generate a consistent level of revenue in relation to its total assets during most quarters.
It is important to note the sharp fluctuations in the fixed asset turnover ratio in early 2023, which may require further investigation to understand the reasons behind such extreme values. Overall, a stable total asset turnover ratio provides some assurance of the company's ability to efficiently use its assets to produce revenue, despite the abnormal values noted in the fixed asset turnover ratio.