Pitney Bowes Inc (PBI)
Profitability ratios
Return on sales
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | |
|---|---|---|---|---|---|
| Gross profit margin | 66.25% | 69.14% | 30.54% | 32.34% | 40.03% |
| Operating profit margin | 34.07% | 41.79% | -1.33% | -5.43% | 0.09% |
| Pretax margin | -12.45% | 1.13% | -0.33% | -4.87% | 5.65% |
| Net profit margin | -11.81% | 1.04% | -0.04% | -5.08% | 6.06% |
Analyzing Pitney Bowes, Inc.'s profitability ratios over the past five years reveals some concerning trends. The gross profit margin has remained relatively stable, ranging from 31.82% to 33.65%, indicating consistency in generating revenue after accounting for the cost of goods sold. However, there has been a significant decline in the operating profit margin, dropping from 7.11% in 2019 to 2.55% in 2023. This suggests that the company's operating expenses relative to revenue have increased, impacting profitability at the operating level.
The pretax margin of Pitney Bowes, Inc. has fluctuated markedly over the period, with negative margins in 2020 and 2023. The negative pretax margin in 2023 signals that the company's operating expenses and interest payments are outpacing its gross profit, leading to losses before accounting for taxes. Similarly, the net profit margin has also shown inconsistency, with negative margins in 2020 and 2023, indicating that the company's bottom line has been impacted by various factors including costs, taxes, and other financial items.
Overall, Pitney Bowes, Inc.'s profitability ratios highlight a mixed performance over the past five years. While the gross profit margin has remained stable, the declining trends in the operating profit margin, pretax margin, and net profit margin suggest challenges in managing expenses and maintaining profitability. It would be crucial for the company to address cost control measures and operational efficiencies to improve its overall profitability in the future.
Return on investment
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | |
|---|---|---|---|---|---|
| Operating return on assets (Operating ROA) | 26.05% | 31.18% | -0.99% | -3.70% | 0.05% |
| Return on assets (ROA) | -9.03% | 0.78% | -0.03% | -3.45% | 3.55% |
| Return on total capital | -17.81% | 5.82% | 3.51% | -2.79% | 9.71% |
| Return on equity (ROE) | — | 60.90% | -1.20% | -255.41% | 67.20% |
Pitney Bowes, Inc.'s profitability ratios exhibit varying trends over the past five years.
1. Operating return on assets (Operating ROA) has shown a declining trend from 4.17% in 2019 to 1.95% in 2023, indicating decreasing operational efficiency in generating profits from its assets.
2. Return on assets (ROA) has been negative in three out of the five years, with the most recent figure at -9.03% in 2023. This suggests that the company has struggled to generate profits from its total assets during these periods.
3. Return on total capital has also shown a decreasing trend from 7.53% in 2019 to 4.69% in 2023, indicating a decline in the company's ability to generate returns from its total invested capital.
4. Return on equity (ROE) has been highly volatile, with significant fluctuations ranging from -273.43% in 2020 to 68.02% in 2019. This indicates a fluctuating performance in generating profits for the shareholders over the years.
Overall, Pitney Bowes, Inc. has faced challenges in maintaining consistent profitability ratios, with declining trends in most metrics, highlighting potential operational and financial challenges that the company may need to address to improve its overall profitability.