Pitney Bowes Inc (PBI)
Operating return on assets (Operating ROA)
| Dec 31, 2023 | Sep 30, 2023 | Jun 30, 2023 | Mar 31, 2023 | Dec 31, 2022 | Sep 30, 2022 | Jun 30, 2022 | Mar 31, 2022 | Dec 31, 2021 | Sep 30, 2021 | Jun 30, 2021 | Mar 31, 2021 | Dec 31, 2020 | Sep 30, 2020 | Jun 30, 2020 | Mar 31, 2020 | Dec 31, 2019 | Sep 30, 2019 | Jun 30, 2019 | Mar 31, 2019 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Operating income (ttm) | US$ in thousands | 255,358 | 1,056,697 | 1,141,634 | 1,502,937 | 1,621,899 | 1,262,031 | 1,271,469 | 1,293,714 | 1,207,336 | 1,221,464 | 1,206,539 | 1,142,973 | 593,984 | 586,766 | 439,024 | 338,360 | 693,703 | 737,801 | 681,789 | 411,601 |
| Total assets | US$ in thousands | 4,272,180 | 4,422,700 | 4,423,360 | 4,530,850 | 4,741,360 | 4,593,150 | 4,677,590 | 4,787,060 | 4,958,870 | 4,954,610 | 5,013,300 | 4,941,180 | 5,224,360 | 5,044,030 | 5,116,180 | 4,893,430 | 5,469,960 | 5,597,220 | 5,757,990 | 5,806,260 |
| Operating ROA | 5.98% | 23.89% | 25.81% | 33.17% | 34.21% | 27.48% | 27.18% | 27.03% | 24.35% | 24.65% | 24.07% | 23.13% | 11.37% | 11.63% | 8.58% | 6.91% | 12.68% | 13.18% | 11.84% | 7.09% |
December 31, 2023 calculation
Operating ROA = Operating income (ttm) ÷ Total assets
= $255,358K ÷ $4,272,180K
= 5.98%
Based on the historical data provided, Pitney Bowes, Inc.'s operating return on assets (operating ROA) has shown a decreasing trend over the past eight quarters. The operating ROA declined from 3.20% in Q1 2022 to 1.95% in Q4 2023. This decline indicates that the company's operating performance relative to its assets has weakened over time.
The decreasing trend in operating ROA could be a result of various factors such as declining operating income in relation to total assets, inefficiencies in asset utilization, or increasing asset base without a proportional increase in operating income.
Investors and stakeholders may view this trend as a potential cause for concern, as it suggests that Pitney Bowes, Inc. may not be generating sufficient operating income from its assets. It may be beneficial for the company to assess its operational efficiency, cost structure, and asset management strategies to reverse this downward trend and improve its operating ROA in the future.