Pitney Bowes Inc (PBI)
Cash ratio
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Cash and cash equivalents | US$ in thousands | 469,726 | 601,053 | 669,981 | 732,480 | 921,450 |
| Short-term investments | US$ in thousands | 16,374 | 22,166 | 11,172 | 14,440 | 18,974 |
| Total current liabilities | US$ in thousands | 1,672,730 | 1,730,410 | 1,727,800 | 1,727,940 | 1,870,460 |
| Cash ratio | 0.29 | 0.36 | 0.39 | 0.43 | 0.50 |
December 31, 2024 calculation
Cash ratio = (Cash and cash equivalents + Short-term investments) ÷ Total current liabilities
= ($469,726K
+ $16,374K)
÷ $1,672,730K
= 0.29
The cash ratio for Pitney Bowes Inc has shown a declining trend over the past five years. As of December 31, 2020, the cash ratio was at 0.50, indicating that the company had $0.50 in cash and cash equivalents for every dollar of current liabilities. However, by December 31, 2024, the cash ratio had decreased to 0.29, suggesting a decrease in the company's ability to cover its short-term obligations with its available cash resources.
This downward trend in the cash ratio may raise concerns about Pitney Bowes Inc's liquidity position and its ability to meet its short-term financial obligations. It is essential for the company to closely monitor and manage its cash resources to ensure it maintains a healthy liquidity position in the face of potential cash flow challenges or unforeseen circumstances.