Pitney Bowes Inc (PBI)
Return on assets (ROA)
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Net income | US$ in thousands | -385,627 | 36,940 | -1,351 | -180,376 | 194,319 |
| Total assets | US$ in thousands | 4,272,180 | 4,741,360 | 4,958,870 | 5,224,360 | 5,469,960 |
| ROA | -9.03% | 0.78% | -0.03% | -3.45% | 3.55% |
December 31, 2023 calculation
ROA = Net income ÷ Total assets
= $-385,627K ÷ $4,272,180K
= -9.03%
The return on assets (ROA) for Pitney Bowes, Inc. has exhibited significant variability over the past five years. The ROA was -9.03% at the end of 2023, indicating a negative return on the company's assets, which could be a concerning sign for investors and stakeholders. This sharp decline from the previous year's ROA of 0.78% suggests deteriorating asset utilization efficiency.
In 2022, the ROA improved to 0.78%, indicating that the company generated a positive return on its assets, albeit at a relatively low level. This improvement could suggest better asset management or operational efficiency during that period.
The ROA was slightly negative at -0.03% in 2021, indicating that the company's assets did not generate a significant return. This marginal decline from the previous year could be a result of operational challenges or economic factors impacting the company's performance.
In 2020, the ROA was significantly negative at -3.48%, signaling a substantial decline in asset efficiency and profitability. This could indicate financial distress or inefficiencies in asset utilization that year.
In contrast, 2019 saw a relatively strong ROA of 3.56%, indicating that the company was able to generate a solid return on its assets during that period. This positive performance suggests effective asset utilization or strong operational performance.
Overall, the fluctuating ROA of Pitney Bowes, Inc. over the past five years reflects varying levels of asset efficiency and profitability, with the company experiencing both positive and negative returns on its assets. Continued monitoring and analysis of the company's ROA will be essential to assess its financial health and operational effectiveness.