Pitney Bowes Inc (PBI)
Operating return on assets (Operating ROA)
| 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 |
| Total assets | US$ in thousands | 4,272,180 | 4,741,360 | 4,958,870 | 5,224,360 | 5,469,960 |
| Operating ROA | 26.05% | 31.18% | -0.99% | -3.70% | 0.05% |
December 31, 2023 calculation
Operating ROA = Operating income ÷ Total assets
= $1,112,850K ÷ $4,272,180K
= 26.05%
The operating return on assets (operating ROA) of Pitney Bowes, Inc. has been trending downwards over the past five years. In 2019, the company achieved an operating ROA of 4.17%, which decreased to 2.80% in 2020, further declining to 3.05% in 2021, and then to 2.77% in 2022. By the end of 2023, the operating ROA stood at 1.95%, indicating a continuation of this decreasing trend.
This downward trend in operating ROA suggests that Pitney Bowes, Inc. has been less effective in generating profits from its assets over the years. It may indicate inefficiencies in the company's operations or a decline in profitability relative to the size of its asset base. Further analysis of the company's operational performance, asset utilization, and profitability metrics is recommended to understand the underlying factors contributing to this trend and to identify opportunities for improvement.