Pitney Bowes Inc (PBI)

Liquidity ratios

Dec 31, 2024 Sep 30, 2024 Jun 30, 2024 Mar 31, 2024 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
Current ratio 0.79 0.88 0.96 0.97 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
Quick ratio 0.29 0.34 0.36 0.33 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
Cash ratio 0.29 0.34 0.36 0.33 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

The current ratio of Pitney Bowes Inc has shown a declining trend from 1.30 in March 2020 to 0.79 in December 2024. This indicates a decrease in the company's ability to meet its short-term obligations with its current assets over this period.

Similarly, the quick ratio, which provides a more stringent measure of liquidity by excluding inventory from current assets, has also trended downwards from 0.51 in March 2020 to 0.29 in March 2023 before slightly recovering to 0.29 in December 2024. This suggests a potential strain on Pitney Bowes Inc's ability to cover its short-term liabilities without relying on inventory.

The cash ratio, which is the most conservative liquidity measure focusing solely on cash and cash equivalents, follows a similar trend to the quick ratio, indicating a decrease in the company's immediate ability to cover its current liabilities with cash on hand.

Overall, the declining trend in these liquidity ratios for Pitney Bowes Inc raises concerns about its short-term financial health and ability to meet its upcoming obligations without facing liquidity challenges. Investors and analysts may need to closely monitor the company's liquidity position and management's strategies to address these downward trends.


Additional liquidity measure

Dec 31, 2024 Sep 30, 2024 Jun 30, 2024 Mar 31, 2024 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
Cash conversion cycle days 15.80 15.01 12.62 13.13 11.65 13.69 14.88 14.49 12.64 13.14 11.99 12.75 11.45 10.06 9.75 9.36 10.19 11.32 13.24 13.32

The cash conversion cycle of Pitney Bowes Inc has shown fluctuations over the periods analyzed. From March 31, 2020, to December 31, 2024, the cash conversion cycle ranged from a low of 9.36 days to a high of 15.80 days. The company's cash conversion cycle measures the number of days it takes for Pitney Bowes to convert its resource inputs into cash flows from sales to receiving cash back.

A decreasing trend in the cash conversion cycle signifies an improvement in the efficiency of the company in managing its working capital and turning its investments into cash quickly. On the other hand, an increasing trend indicates potential inefficiencies in the company's operations or changes in its business model that may affect the speed of the cash conversion cycle.

Pitney Bowes should regularly monitor its cash conversion cycle to ensure optimized working capital management, maintain healthy liquidity levels, and streamline its operational processes to improve cash flow efficiency.