Pitney Bowes Inc (PBI)
Quick ratio
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Cash | 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 |
| Receivables | US$ in thousands | 906,336 | 917,319 | 909,204 | 980,509 | 1,099,680 |
| Total current liabilities | US$ in thousands | 1,730,410 | 1,727,800 | 1,727,940 | 1,870,460 | 1,569,690 |
| Quick ratio | 0.88 | 0.93 | 0.96 | 1.03 | 1.36 |
December 31, 2023 calculation
Quick ratio = (Cash + Short-term investments + Receivables) ÷ Total current liabilities
= ($601,053K
+ $22,166K
+ $906,336K)
÷ $1,730,410K
= 0.88
The quick ratio of Pitney Bowes, Inc. has shown a declining trend over the past five years. The quick ratio decreased from 1.37 in 2019 to 0.94 in 2023. This indicates that the company may have become less liquid over time, as the quick ratio measures the ability of a company to meet its short-term obligations with its most liquid assets.
A quick ratio below 1.0 suggests that Pitney Bowes may have difficulty in meeting its short-term liabilities using its quick assets alone. The downward trend in the quick ratio may raise concerns about the company's liquidity position and its ability to cover its immediate financial obligations.
It is important for Pitney Bowes to closely monitor its liquidity position and consider strategies to improve its quick ratio, such as controlling inventory levels, managing accounts receivable effectively, or increasing cash reserves. Additionally, investors and creditors may pay attention to the declining quick ratio as it could indicate potential financial risks for the company.