Pitney Bowes Inc (PBI)
Solvency ratios
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | |
|---|---|---|---|---|---|
| Debt-to-assets ratio | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Debt-to-capital ratio | — | — | 0.00 | 0.00 | 0.00 |
| Debt-to-equity ratio | — | — | 0.00 | 0.00 | 0.00 |
| Financial leverage ratio | — | — | 78.17 | 44.03 | 73.98 |
Pitney Bowes Inc's solvency ratios indicate a consistently strong financial position in terms of its leverage and debt management.
1. Debt-to-assets ratio: Pitney Bowes has maintained a debt-to-assets ratio of 0.00 over the 5-year period from 2020 to 2024. This suggests that the company has not relied on debt to finance its assets, which is a positive sign of financial health and stability.
2. Debt-to-capital ratio: The data shows a consistent debt-to-capital ratio of 0.00 from 2020 to 2022. However, the ratios for 2023 and 2024 are indicated as "—", possibly due to missing or undisclosed information. A lower debt-to-capital ratio indicates that the company has lower financial leverage and is less reliant on debt financing.
3. Debt-to-equity ratio: Similarly, the debt-to-equity ratio for Pitney Bowes remained at 0.00 from 2020 to 2022. The ratios for 2023 and 2024 are not provided, but historically low debt-to-equity ratios suggest that the company has lower financial risk and is less dependent on external financing.
4. Financial leverage ratio: The financial leverage ratio for Pitney Bowes decreased from 73.98 in 2020 to 44.03 in 2021, indicating a reduction in financial leverage. However, there is missing data for 2023 and 2024. A declining financial leverage ratio suggests that the company has reduced its reliance on debt to fund its operations, which can be viewed positively by investors and creditors.
Overall, based on the available data, Pitney Bowes Inc appears to have a strong solvency position with low debt levels and effective management of its financial leverage.
Coverage ratios
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | |
|---|---|---|---|---|---|
| Interest coverage | 0.70 | -6.42 | 0.94 | 1.04 | -0.50 |
The interest coverage ratio reflects Pitney Bowes Inc's ability to meet its interest obligations with its operating income. A ratio below 1 indicates that the company is not generating enough operating income to cover its interest expenses, which may raise concerns about its financial health.
Pitney Bowes Inc's interest coverage ratio has fluctuated over the past few years. As of December 31, 2020, the company had a negative interest coverage of -0.50, suggesting that its operating income was insufficient to cover its interest expenses. This is a red flag indicating a potentially unsustainable financial position.
By December 31, 2021, the interest coverage improved to 1.04, indicating that the company's operating income was just enough to cover its interest expenses. While this is a positive improvement, the margin is still narrow, leaving little room for error or economic downturns.
The trend continued in 2022 and 2023, with interest coverage ratios of 0.94 and -6.42, respectively. The significant decrease in coverage ratio in 2023 may indicate financial distress or challenges in generating sufficient earnings to cover interest payments.
As of December 31, 2024, the interest coverage ratio improved slightly to 0.70, but it is still below the ideal threshold of 1. This suggests that Pitney Bowes Inc continues to face challenges in generating enough operating income to comfortably meet its interest obligations.
In conclusion, Pitney Bowes Inc's interest coverage ratio has been volatile, with periods of inadequate coverage that raise concerns about its financial stability and ability to service its debt. Investors and stakeholders should closely monitor the company's financial performance and debt management strategies to ensure long-term sustainability.