Pitney Bowes Inc (PBI)
Operating return on assets (Operating ROA)
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Operating income | US$ in thousands | 102,502 | -406,502 | 36,940 | 198,117 | -20,923 |
| Total assets | US$ in thousands | 3,397,520 | 4,272,180 | 4,741,360 | 4,958,870 | 5,224,360 |
| Operating ROA | 3.02% | -9.52% | 0.78% | 4.00% | -0.40% |
December 31, 2024 calculation
Operating ROA = Operating income ÷ Total assets
= $102,502K ÷ $3,397,520K
= 3.02%
Pitney Bowes Inc's operating return on assets (Operating ROA) has fluctuated over the years based on the provided data.
1. In December 31, 2020, the company recorded a negative operating ROA of -0.40%, indicating that the company's operating income was not efficiently generating returns on its assets during that period.
2. By December 31, 2021, there was a significant improvement with an operating ROA of 4.00%, suggesting that the company's operating performance had become more efficient in utilizing its assets to generate income.
3. However, in December 31, 2022, the operating ROA decreased to 0.78%, indicating a slight decline in the company's ability to generate operating income relative to its assets.
4. Subsequently, by December 31, 2023, there was a significant downturn with the operating ROA dropping to -9.52%, indicating a substantial decline in the company's operating efficiency and performance.
5. Finally, as of December 31, 2024, there was a recovery in the operating ROA to 3.02%, although not as high as the peak in 2021, it signified an improvement in the company's ability to generate operating income from its assets.
In conclusion, Pitney Bowes Inc's Operating ROA has shown fluctuations over the years, reflecting varying levels of operating efficiency and asset utilization within the company. It is essential for the company to maintain or improve its operating ROA to ensure sustainable profitability and effective asset management in the future.