Pitney Bowes Inc (PBI)
Profitability ratios
Return on sales
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | |
|---|---|---|---|---|---|
| Gross profit margin | 55.56% | 92.55% | 30.54% | 31.82% | 33.70% |
| Operating profit margin | 5.06% | -12.45% | 1.04% | 5.39% | -0.59% |
| Pretax margin | -2.58% | -12.45% | 1.13% | -0.20% | -5.16% |
| Net profit margin | -10.05% | -11.81% | 1.04% | 0.10% | -5.08% |
Based on the provided data, Pitney Bowes Inc's profitability ratios exhibited fluctuating trends over the years.
1. Gross Profit Margin: Pitney Bowes' gross profit margin decreased from 33.70% in December 2020 to 30.54% in December 2022 before experiencing a sudden spike to 92.55% in December 2023, which may be an anomaly, followed by a decrease to 55.56% in December 2024. The trend indicates some inconsistency in managing the cost of goods sold.
2. Operating Profit Margin: The operating profit margin started in negative territory at -0.59% in December 2020, improved to 5.39% in December 2021, dropped to 1.04% in December 2022, declined sharply to -12.45% in December 2023, then recovered to 5.06% in December 2024. The company struggled with operational efficiency in some years but managed to improve profitability in others.
3. Pretax Margin: Pitney Bowes reported negative pretax margins in December 2020, December 2023, and December 2024. The margin improved from -5.16% in December 2020 to -0.20% in December 2021, reached a positive figure of 1.13% in December 2022, but then relapsed to negative levels in the subsequent years.
4. Net Profit Margin: The net profit margin was negative for most years except for a slight positive margin in December 2021 and December 2022. However, the margin deteriorated significantly in December 2023 and December 2024, indicating challenges in generating profits after accounting for all expenses.
Overall, Pitney Bowes Inc's profitability ratios show a mix of improvements and setbacks, indicating the company's need to focus on enhancing operational efficiency and cost management to sustain profitability in the long term.
Return on investment
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | |
|---|---|---|---|---|---|
| Operating return on assets (Operating ROA) | 3.02% | -9.52% | 0.78% | 4.00% | -0.40% |
| Return on assets (ROA) | -5.99% | -9.03% | 0.78% | 0.07% | -3.45% |
| Return on total capital | — | — | 215.01% | 133.22% | -109.90% |
| Return on equity (ROE) | — | — | 60.90% | 3.11% | -255.41% |
Pitney Bowes Inc's profitability ratios show fluctuating performance over the analyzed period.
- Operating return on assets (Operating ROA) improved from -0.40% in 2020 to 4.00% in 2021, dipped to 0.78% in 2022, then experienced a significant decline to -9.52% in 2023, and finally rose to 3.02% in 2024. This indicates that the company's operating income generated from its assets varied significantly over the years.
- Return on assets (ROA) was negative in 2020 at -3.45%, slightly improved to 0.07% in 2021 and 0.78% in 2022, but then dropped to -9.03% in 2023 and decreased further to -5.99% in 2024. This suggests that Pitney Bowes Inc struggled to generate profit from its assets, with the ratios fluctuating and inconsistent.
- Return on total capital was severely negative in 2020 at -109.90%, which then improved substantially to 133.22% in 2021 and further increased to 215.01% in 2022. However, the data is missing for 2023 and 2024, indicating uncertainty about the company's ability to generate return on its total capital in those years.
- Return on equity (ROE) was extremely negative in 2020 at -255.41%, but turned positive in 2021 at 3.11%, improved significantly to 60.90% in 2022. However, data is unavailable for 2023 and 2024, leaving a gap in understanding the company's return to its equity holders in those years.
Overall, Pitney Bowes Inc's profitability ratios suggest a mix of performance, with improvements in some areas but with inconsistency and challenges in consistently generating returns for its stakeholders. Further analysis and contextual information would be required to fully assess the company's financial health and performance.