Pitney Bowes Inc (PBI)
Total asset turnover
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Revenue | US$ in thousands | 3,266,350 | 3,538,040 | 3,673,560 | 3,554,080 | 3,205,120 |
| Total assets | US$ in thousands | 4,272,180 | 4,741,360 | 4,958,870 | 5,224,360 | 5,469,960 |
| Total asset turnover | 0.76 | 0.75 | 0.74 | 0.68 | 0.59 |
December 31, 2023 calculation
Total asset turnover = Revenue ÷ Total assets
= $3,266,350K ÷ $4,272,180K
= 0.76
The total asset turnover of Pitney Bowes, Inc. has shown a positive trend over the five-year period from 2019 to 2023. The ratio has increased steadily from 0.59 in 2019 to 0.76 in 2023, reflecting the company's ability to generate more revenue relative to its total assets.
A total asset turnover ratio of 0.76 in 2023 indicates that for every dollar of total assets owned by the company, it generated $0.76 in revenue. This suggests that Pitney Bowes is utilizing its assets more efficiently to drive sales, which is a positive sign for investors and creditors.
The improvement in the total asset turnover ratio signifies increased operational efficiency and effective utilization of resources by the company. It indicates that Pitney Bowes has been successful in generating more sales without significantly increasing its asset base, which is indicative of good management and operational performance.
Overall, the increasing trend in the total asset turnover ratio of Pitney Bowes, Inc. demonstrates improving operational efficiency and effectiveness in utilizing its assets to generate revenue over the analyzed period.