Pitney Bowes Inc (PBI)

Current ratio

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 Dec 31, 2019 Sep 30, 2019 Jun 30, 2019 Mar 31, 2019
Total current assets US$ in thousands 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 2,236,080 2,406,760 2,161,860 2,227,110
Total current liabilities US$ in thousands 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 1,569,690 2,145,560 1,762,320 1,774,760
Current ratio 0.98 0.99 0.87 0.88 1.04 1.07 1.08 1.04 1.09 1.09 1.11 1.13 1.13 1.22 1.29 1.30 1.42 1.12 1.23 1.25

December 31, 2023 calculation

Current ratio = Total current assets ÷ Total current liabilities
= $1,691,920K ÷ $1,730,410K
= 0.98

The current ratio measures a company's ability to cover its short-term obligations with its current assets. A ratio above 1 indicates that a company has more current assets than current liabilities, while a ratio below 1 suggests the opposite.

Looking at Pitney Bowes, Inc.'s current ratio over the past eight quarters, we can see a slight decline from 1.08 in Q2 2022 to 0.98 in Q4 2023. This decreasing trend may raise concerns about the company's short-term liquidity position.

While the current ratio fluctuated between 0.87 and 1.08 during the period examined, it generally remained close to or below 1. This implies that Pitney Bowes may be struggling to meet its short-term obligations with its current assets.

Investors and creditors typically prefer to see a current ratio above 1 as it indicates a healthy liquidity position. Pitney Bowes' current ratios below 1 suggest a potential risk in terms of its ability to cover short-term liabilities with existing current assets. Further investigation into the underlying reasons for this trend is warranted to fully assess the company's financial health.