Pitney Bowes Inc (PBI)

Pitney Bowes Inc's liquidity ratios have shown a decreasing trend over the years as per the data provided.

- The current ratio, which measures the company's ability to meet short-term obligations with its current assets, has decreased from 1.13 in 2020 to 0.79 in 2024. This indicates that Pitney Bowes may face challenges in paying off its short-term debts with its current assets.

- The quick ratio, a more stringent measure of liquidity that excludes inventory from current assets, has also declined from 0.50 in 2020 to 0.29 in 2024. This suggests that the company's ability to meet immediate obligations without relying on inventory has weakened.

- The cash ratio, which represents the proportion of current liabilities that can be covered by cash and cash equivalents, has followed a similar declining trend from 0.50 in 2020 to 0.29 in 2024. This indicates a decrease in Pitney Bowes' ability to cover its short-term liabilities solely with cash.

Overall, the declining trend in these liquidity ratios suggests that Pitney Bowes Inc may be facing increased liquidity risk and could potentially encounter difficulties in meeting its short-term financial obligations in the future.

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Additional liquidity measure

The cash conversion cycle of Pitney Bowes Inc has shown some fluctuations over the years. From December 31, 2020, to December 31, 2021, the cycle increased slightly from 11.07 days to 11.45 days. However, there was a more significant jump by December 31, 2022, as the cycle extended to 12.43 days. A significant spike occurred by December 31, 2023, with a substantial increase to 105.06 days, indicating a potential issue in managing cash flow within the business. By December 31, 2024, the cycle improved to 24.25 days, but it still remained elevated compared to earlier years. The overall trend suggests a need for Pitney Bowes Inc to focus on optimizing its cash conversion cycle to improve efficiency in managing its working capital.