Pitney Bowes Inc (PBI)
Working capital turnover
| 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Revenue (ttm) | US$ in thousands | 2,639,263 | 2,994,720 | 3,279,008 | 3,262,319 | 3,266,348 | 3,303,461 | 3,350,624 | 3,445,638 | 3,538,042 | 3,613,063 | 3,657,598 | 3,685,306 | 3,673,561 | 3,718,269 | 3,734,718 | 3,673,007 | 3,554,078 | 3,357,001 | 3,255,228 | 3,278,515 |
| Total current assets | US$ in thousands | 1,317,950 | 1,486,150 | 1,605,740 | 1,582,100 | 1,691,920 | 1,617,530 | 1,614,690 | 1,589,300 | 1,798,020 | 1,709,910 | 1,766,950 | 1,742,110 | 1,892,050 | 1,843,260 | 1,898,760 | 1,808,100 | 2,112,560 | 1,922,510 | 2,160,530 | 1,870,190 |
| Total current liabilities | US$ in thousands | 1,672,730 | 1,684,550 | 1,678,190 | 1,625,420 | 1,730,410 | 1,640,530 | 1,856,620 | 1,798,670 | 1,727,800 | 1,598,640 | 1,628,930 | 1,667,250 | 1,727,940 | 1,688,760 | 1,717,240 | 1,594,260 | 1,870,460 | 1,577,910 | 1,678,520 | 1,442,520 |
| 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 |
December 31, 2024 calculation
Working capital turnover = Revenue (ttm) ÷ (Total current assets – Total current liabilities)
= $2,639,263K ÷ ($1,317,950K – $1,672,730K)
= —
The working capital turnover ratio reflects how efficiently a company is utilizing its working capital to generate sales revenue. A higher working capital turnover ratio indicates that the company is effectively managing its working capital.
Based on the provided data for Pitney Bowes Inc:
- The working capital turnover ratio has shown a steady increase from March 31, 2020, to December 31, 2022, indicating improving efficiency in utilizing working capital to generate sales.
- The ratio peaked at 50.39 as of December 31, 2022, showcasing a substantial improvement in working capital management.
- However, there was a decrease in the ratio for June 30, 2023, and September 30, 2023, as the data is not available (indicated by "—"), which could be due to various operational or strategic factors.
- Trend analysis is required to understand whether the decline in the ratio for the latter half of the year 2023 is a one-time event or a sustained trend.
- It is essential for Pitney Bowes Inc to monitor and manage its working capital efficiently to ensure optimal utilization in supporting its operations and growth strategies.