Pitney Bowes Inc (PBI)

Short-term

Turnover ratios

From the activity ratios provided for Pitney Bowes, Inc., we can analyze the efficiency of the company's operations in managing inventory, receivables, payables, and working capital.

1. Inventory Turnover: Pitney Bowes has shown consistent improvement in managing its inventory turnover over the quarters, with a high of 31.13 in Q4 2023. A high inventory turnover ratio indicates that the company is effectively selling its inventory, minimizing holding costs and potential obsolescence.

2. Receivables Turnover: The company's receivables turnover has fluctuated slightly but has generally remained stable around 4 times a year. A higher turnover ratio suggests that Pitney Bowes is efficient in collecting its accounts receivables, thereby improving cash flow and reducing outstanding balances.

3. Payables Turnover: The data provided only includes a value for Q4 2022 and Q4 2023, both indicating a healthy payables turnover ratio. Payables turnover reflects how quickly the company pays its suppliers. A higher ratio might indicate that Pitney Bowes is able to manage its payables efficiently.

4. Working Capital Turnover: Pitney Bowes did not provide data for working capital turnover for the Q4 2023 - Q1 2023 period. However, in previous quarters, the company had a significantly high working capital turnover, indicating efficient utilization of working capital to generate sales. This metric shows how effectively the company is using its working capital to support its revenue-generating activities.

Overall, based on the activity ratios provided, Pitney Bowes appears to be managing its assets and operations efficiently, with an emphasis on quick turnover of inventory and receivables, potentially effective management of payables, and efficient utilization of working capital to support its business activities.

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Average number of days

Pitney Bowes, Inc.'s activity ratios provide insights into the efficiency of the company's inventory management, accounts receivable collection, and accounts payable processes.

1. Days of Inventory on Hand (DOH):
- The DOH has shown fluctuations over the quarters, ranging from 11.72 days to 14.97 days.
- It indicates that on average, Pitney Bowes holds its inventory for approximately 12-15 days before selling it.
- A lower DOH is generally favorable as it suggests faster inventory turnover and better liquidity.

2. Days of Sales Outstanding (DSO):
- The DSO has varied between 87.16 days and 101.22 days during the quarters.
- This metric reflects the average number of days it takes for the company to collect on its sales.
- A decrease in DSO over time indicates a more efficient accounts receivable collection process.

3. Number of Days of Payables:
- The data provides limited information, as payables information is missing for several quarters.
- When available, the number of days of payables ranged from 47.26 days to 47.84 days.
- A longer payable period allows Pitney Bowes to hold onto cash longer, improving cash flow and liquidity.

Overall, analyzing these activity ratios together can offer a comprehensive view of Pitney Bowes' operational efficiency and working capital management. fluctuations in these ratios should be further investigated to understand the underlying reasons and assess the company's overall financial health.

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Long-term

Pitney Bowes, Inc. has shown consistent long-term activity ratios over the past eight quarters. The fixed asset turnover ratio, which measures how efficiently the company utilizes its fixed assets to generate sales, has ranged between 7.83 and 8.02. This indicates that for every dollar invested in fixed assets, the company generates between $7.83 and $8.02 in sales. The stability of this ratio suggests that Pitney Bowes has been effectively utilizing its fixed assets to generate revenue.

On the other hand, the total asset turnover ratio, which assesses the company's overall efficiency in utilizing all assets to generate sales, has also been relatively stable, fluctuating between 0.75 and 0.79. This implies that for every dollar invested in total assets, the company generates between $0.75 and $0.79 in sales. The consistency of this ratio implies that Pitney Bowes has been able to efficiently generate revenue using its total asset base.

Overall, based on the long-term activity ratios, it appears that Pitney Bowes, Inc. has been efficiently managing its assets to generate sales over the periods analyzed. The stable ratios suggest that the company has been effective in utilizing both fixed and total assets to drive revenue growth.