Pitney Bowes Inc (PBI)
Working capital 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 current assets | US$ in thousands | 1,691,920 | 1,798,020 | 1,892,050 | 2,112,560 | 2,236,080 |
| Total current liabilities | US$ in thousands | 1,730,410 | 1,727,800 | 1,727,940 | 1,870,460 | 1,569,690 |
| Working capital turnover | — | 50.39 | 22.38 | 14.68 | 4.81 |
December 31, 2023 calculation
Working capital turnover = Revenue ÷ (Total current assets – Total current liabilities)
= $3,266,350K ÷ ($1,691,920K – $1,730,410K)
= —
The working capital turnover ratio for Pitney Bowes, Inc. has shown a consistent increase over the past five years, indicating an improvement in the company's efficiency in managing its working capital.
In 2019, the working capital turnover ratio was 4.81, which means that for every dollar of working capital, the company generated $4.81 of revenue. This ratio increased significantly to 15.03 in 2020, suggesting that the company was able to generate more revenue relative to its working capital.
The trend continued with further improvement in 2021, where the working capital turnover ratio rose to 22.38. This indicates that Pitney Bowes became even more efficient in utilizing its working capital to generate revenue.
By the end of 2022, the working capital turnover ratio surged to 50.39, reflecting a substantial increase in efficiency in managing working capital compared to the previous years.
Overall, the increasing trend in the working capital turnover ratio for Pitney Bowes, Inc. signifies that the company's operational efficiency and effectiveness in utilizing its working capital have improved significantly over the past five years.