Pitney Bowes Inc (PBI)
Working capital turnover
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Revenue | US$ in thousands | 2,026,600 | 3,266,350 | 3,538,040 | 3,673,560 | 3,554,080 |
| Total current assets | US$ in thousands | 1,317,950 | 1,691,920 | 1,798,020 | 1,892,050 | 2,112,560 |
| Total current liabilities | US$ in thousands | 1,672,730 | 1,730,410 | 1,727,800 | 1,727,940 | 1,870,460 |
| Working capital turnover | — | — | 50.39 | 22.38 | 14.68 |
December 31, 2024 calculation
Working capital turnover = Revenue ÷ (Total current assets – Total current liabilities)
= $2,026,600K ÷ ($1,317,950K – $1,672,730K)
= —
To analyze Pitney Bowes Inc's working capital turnover, we can see a significant improvement over the years. The working capital turnover ratio measures how efficiently a company is utilizing its working capital to generate sales.
In December 2020, the working capital turnover was 14.68. This indicates that for every dollar of working capital invested, Pitney Bowes generated $14.68 in sales.
By December 2021, the ratio increased to 22.38, showing a notable improvement in efficiency. This suggests that the company was able to generate $22.38 in sales for each dollar of working capital.
The significant jump in December 2022 to 50.39 reflects a substantial increase in efficiency in utilizing working capital to drive sales. This indicates that the company generated $50.39 in sales for every dollar of working capital.
Although the data for December 2023 and 2024 is not available, the trend indicates a positive trajectory in the company's working capital turnover efficiency. It implies that Pitney Bowes has been effectively managing its working capital to support its operations and drive revenue growth.
Overall, the increasing trend in working capital turnover indicates improved efficiency in managing working capital and generating sales for Pitney Bowes Inc.