Pitney Bowes Inc (PBI)
Cash ratio
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Cash and cash equivalents | US$ in thousands | 601,053 | 669,981 | 732,480 | 921,450 | 924,442 |
| Short-term investments | US$ in thousands | 22,166 | 11,172 | 14,440 | 18,974 | 115,879 |
| Total current liabilities | US$ in thousands | 1,730,410 | 1,727,800 | 1,727,940 | 1,870,460 | 1,569,690 |
| Cash ratio | 0.36 | 0.39 | 0.43 | 0.50 | 0.66 |
December 31, 2023 calculation
Cash ratio = (Cash and cash equivalents + Short-term investments) ÷ Total current liabilities
= ($601,053K
+ $22,166K)
÷ $1,730,410K
= 0.36
The cash ratio of Pitney Bowes, Inc. has been on a declining trend over the past five years, decreasing from 0.73 in 2019 to 0.41 in 2023. This indicates that the company's ability to cover its short-term liabilities with cash and cash equivalents has been decreasing over time. A cash ratio below 1 suggests that the company may have difficulty meeting its short-term obligations solely with its available cash resources.
The decreasing trend in the cash ratio could be a sign of potential liquidity challenges or inefficiencies in managing cash resources within the company. It could also indicate that the company is relying more heavily on other sources of liquidity to meet its short-term obligations, such as through borrowing or liquidating other assets.
It is essential for Pitney Bowes, Inc. to closely monitor its cash position and liquidity management strategies to ensure that it can meet its short-term liabilities without experiencing financial distress. The company may need to implement more effective cash management practices or consider optimizing its working capital to improve its cash position and liquidity in the future.