Pitney Bowes Inc (PBI)

Liquidity ratios

	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
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
Quick ratio	0.88	0.87	0.76	0.76	0.93	0.92	0.87	0.91	0.96	0.97	1.00	1.02	1.03	1.14	1.21	1.22	1.36	0.82	1.17	1.14
Cash ratio	0.36	0.35	0.30	0.29	0.39	0.38	0.36	0.38	0.43	0.44	0.47	0.44	0.50	0.52	0.61	0.51	0.66	0.30	0.47	0.51

Pitney Bowes, Inc.'s liquidity ratios show fluctuations in the company's ability to meet its short-term obligations with its current assets. The current ratio, which measures the company's ability to cover its short-term liabilities with its current assets, has been on a downward trend over the past few quarters from Q1 2022 to Q4 2023, falling below the ideal threshold of 1. This indicates that Pitney Bowes may be facing challenges in meeting its short-term obligations.

The quick ratio, a more stringent liquidity measure that excludes inventory from current assets, also shows a declining trend over the same period. This suggests that Pitney Bowes may have limited ability to cover its short-term obligations without relying on inventory, which could signify potential cash flow issues or inefficiencies in managing current assets.

Furthermore, the cash ratio, which is the most conservative measure of liquidity, has also decreased from Q1 2022 to Q4 2023. This indicates that Pitney Bowes may have a lower proportion of cash and cash equivalents relative to its current liabilities, raising concerns about the company's immediate ability to meet its short-term financial commitments.

Overall, the declining trend in all three liquidity ratios suggests that Pitney Bowes may be experiencing challenges in maintaining adequate liquidity levels to meet its short-term financial obligations. Investors and stakeholders may need to closely monitor the company's liquidity position and management strategies to ensure its financial health and stability in the short term.

Additional liquidity measure

		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
Cash conversion cycle	days	30.64	119.67	121.35	122.82	11.98	110.21	100.51	101.18	57.09	98.53	97.48	100.92	66.74	117.60	126.31	130.42	84.62	140.06	154.22	142.05

The cash conversion cycle of Pitney Bowes, Inc. has shown fluctuations over the past eight quarters. In Q4 2023, the company's cash conversion cycle improved significantly to 65.67 days compared to the previous quarter at 106.46 days, indicating a more efficient management of cash, receivables, and payables.

Despite this improvement, the cycle in Q4 2023 was higher than the same period in the previous year, Q4 2022, which stood at 58.59 days. This suggests a longer time taken for Pitney Bowes to convert its investments in inventory and receivables into cash within the latest quarter.

Overall, Pitney Bowes has experienced fluctuations in its cash conversion cycle, emphasizing the importance of managing working capital effectively to ensure smoother operations and cash flow. The trend observed indicates the need for the company to further optimize its management of inventory, receivables, and payables to enhance its financial efficiency and performance.