Pitney Bowes Inc (PBI)
Return on total capital
| Dec 31, 2024 | Sep 30, 2024 | Jun 30, 2024 | Mar 31, 2024 | 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Earnings before interest and tax (EBIT) (ttm) | US$ in thousands | 27,545 | -156,130 | -129,453 | -250,032 | -279,282 | -53,813 | -46,518 | 103,915 | 138,945 | 136,383 | 140,608 | 168,108 | 104,471 | 121,710 | 122,036 | 115,160 | -71,045 | -74,846 | -109,030 | -85,270 |
| Long-term debt | US$ in thousands | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — |
| Total stockholders’ equity | US$ in thousands | -578,433 | -518,879 | -427,889 | -392,355 | -368,576 | -125,109 | -75,487 | 59,964 | 60,653 | -8,276 | 44,154 | 92,882 | 112,632 | 48,663 | 53,370 | 19,163 | 66,395 | 79,125 | 44,580 | 29,430 |
| Return on total capital | — | — | — | — | — | — | — | 173.30% | 229.08% | — | 318.45% | 180.99% | 92.75% | 250.11% | 228.66% | 600.95% | -107.00% | -94.59% | -244.57% | -289.74% |
December 31, 2024 calculation
Return on total capital = EBIT (ttm) ÷ (Long-term debt + Total stockholders’ equity)
= $27,545K ÷ ($—K + $-578,433K)
= —
Return on total capital is a key financial ratio that indicates the efficiency of a company in generating returns from the total capital employed in the business. Looking at the historical data provided for Pitney Bowes Inc, we observe significant fluctuations in the return on total capital over the past few years.
In the first half of 2020, the company experienced negative returns on total capital, indicating that it was not effectively utilizing its capital to generate profits. However, there was a notable turnaround in the latter half of 2020, with a positive return recorded in the last quarter of the year.
The trend continued into 2021, with a substantial increase in the return on total capital, reaching as high as 600.95% in the first quarter. This suggests that Pitney Bowes Inc significantly improved its capital efficiency and profitability during this period.
As we move further into 2022 and 2023, the return on total capital remains relatively high, indicating sustained profitability and efficient capital utilization by the company. However, there are missing data points for some quarters, which make it challenging to assess the complete trend.
Overall, based on the available data, Pitney Bowes Inc has shown a significant improvement in its return on total capital, reflecting a more effective use of capital and a potentially stronger financial performance compared to the earlier periods.