Pitney Bowes Inc (PBI)
Return on equity (ROE)
| 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 stockholders’ equity | US$ in thousands | -368,576 | 60,653 | 112,632 | 70,621 | 289,154 |
| ROE | — | 60.90% | -1.20% | -255.41% | 67.20% |
December 31, 2023 calculation
ROE = Net income ÷ Total stockholders’ equity
= $-385,627K ÷ $-368,576K
= —
Pitney Bowes Inc.'s return on equity (ROE) has exhibited significant fluctuations over the past five years. The company's ROE stood at 60.90% in 2022, reflecting a strong performance in generating profits relative to shareholders' equity. However, this positive trend sharply reversed in 2021, with the ROE plunging to -1.20%, indicating a decline in profitability compared to equity.
The ROE took a drastic negative turn in 2020, plummeting to -273.43%, signaling a substantial loss relative to shareholders' equity during that period. This could be attributed to various factors such as decreased profitability, high debt levels, or asset write-downs.
In contrast, the ROE rebounded significantly in 2019, reaching 68.02%, showcasing a strong profitability performance that year. It is essential to note that the company's ROE has been volatile, indicating fluctuations in its ability to generate profits from shareholders' equity efficiently.
Overall, Pitney Bowes Inc.'s ROE has portrayed an unstable trend over the past five years, reflecting the company's varying profitability levels and highlighting the importance of conducting a detailed analysis to understand the underlying factors driving these fluctuations.