Pitney Bowes Inc (PBI)
Debt-to-capital ratio
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Long-term debt | US$ in thousands | 2,087,100 | 2,172,500 | 2,299,100 | 2,348,360 | 2,719,610 |
| Total stockholders’ equity | US$ in thousands | -368,576 | 60,653 | 112,632 | 70,621 | 289,154 |
| Debt-to-capital ratio | 1.21 | 0.97 | 0.95 | 0.97 | 0.90 |
December 31, 2023 calculation
Debt-to-capital ratio = Long-term debt ÷ (Long-term debt + Total stockholders’ equity)
= $2,087,100K ÷ ($2,087,100K + $-368,576K)
= 1.21
The debt-to-capital ratio of Pitney Bowes, Inc. has gradually increased over the past five years, from 0.91 in 2019 to 1.21 in 2023. This indicates that the company is relying more on debt to finance its operations and investments relative to its total capital structure.
A ratio above 1 suggests that the company's debt surpasses its total capital, which could potentially indicate higher financial risk and leverage. However, it is essential to consider the industry norms and the company's specific circumstances when evaluating the significance of this ratio.
The consistent upward trend in the debt-to-capital ratio may raise concerns about Pitney Bowes's ability to manage its debt levels effectively. Investors and stakeholders may closely monitor this ratio to assess the company's financial health and debt management strategies.