Pitney Bowes Inc (PBI)
Financial leverage ratio
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Total assets | US$ in thousands | 3,397,520 | 4,272,180 | 4,741,360 | 4,958,870 | 5,224,360 |
| Total stockholders’ equity | US$ in thousands | -578,433 | -368,576 | 60,653 | 112,632 | 70,621 |
| Financial leverage ratio | — | — | 78.17 | 44.03 | 73.98 |
December 31, 2024 calculation
Financial leverage ratio = Total assets ÷ Total stockholders’ equity
= $3,397,520K ÷ $-578,433K
= —
The financial leverage ratio measures a company's use of debt to finance its operations and activities. In the case of Pitney Bowes Inc, the trend in the financial leverage ratio from 2020 to 2022 shows fluctuations, with a notable decrease from 73.98 in 2020 to 44.03 in 2021, followed by an increase to 78.17 in 2022.
The significant decrease from 2020 to 2021 suggests that Pitney Bowes Inc reduced its reliance on debt financing, which could indicate a shift towards a more conservative financial strategy or a focus on reducing financial risk. However, the subsequent increase in 2022 indicates that the company may have increased its debt levels to support growth initiatives or capitalize on investment opportunities.
The absence of data for 2023 and 2024 makes it challenging to assess the ongoing trend in Pitney Bowes Inc's financial leverage ratio. It is important for the company to maintain a balanced approach to debt financing to ensure long-term financial stability and manage potential risks associated with high leverage levels.
Overall, the fluctuations in Pitney Bowes Inc's financial leverage ratio highlight the importance of closely monitoring and managing the company's debt levels to support its strategic objectives and maintain a healthy financial position.