Pitney Bowes Inc (PBI)
Operating profit margin
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Operating income | US$ in thousands | 1,112,850 | 1,478,580 | -48,989 | -193,083 | 2,836 |
| Revenue | US$ in thousands | 3,266,350 | 3,538,040 | 3,673,560 | 3,554,080 | 3,205,120 |
| Operating profit margin | 34.07% | 41.79% | -1.33% | -5.43% | 0.09% |
December 31, 2023 calculation
Operating profit margin = Operating income ÷ Revenue
= $1,112,850K ÷ $3,266,350K
= 34.07%
Pitney Bowes, Inc.'s operating profit margin has shown a declining trend over the past five years. In 2019, the operating profit margin was at its highest at 7.11%, indicating a strong ability to generate profits from its core business operations. However, this margin has steadily decreased to 2.55% by the end of 2023.
The decline in operating profit margin may suggest challenges in managing operating expenses relative to revenue generation or facing pricing pressures in the industry. It would be important for Pitney Bowes management to closely evaluate the factors contributing to this decline and implement strategies to improve efficiency and profitability in the future.