Pitney Bowes Inc (PBI)
Financial leverage ratio
| 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 | Dec 31, 2019 | Sep 30, 2019 | Jun 30, 2019 | Mar 31, 2019 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Total assets | US$ in thousands | 4,272,180 | 4,422,700 | 4,423,360 | 4,530,850 | 4,741,360 | 4,593,150 | 4,677,590 | 4,787,060 | 4,958,870 | 4,954,610 | 5,013,300 | 4,941,180 | 5,224,360 | 5,044,030 | 5,116,180 | 4,893,430 | 5,469,960 | 5,597,220 | 5,757,990 | 5,806,260 |
| Total stockholders’ equity | US$ in thousands | -368,576 | -125,109 | -75,487 | 59,964 | 60,653 | -8,276 | 44,154 | 92,882 | 112,632 | 48,663 | 53,370 | 19,163 | 70,621 | 79,125 | 44,580 | 29,430 | 289,154 | 25,412 | 52,972 | 86,450 |
| Financial leverage ratio | — | — | — | 75.56 | 78.17 | — | 105.94 | 51.54 | 44.03 | 101.81 | 93.93 | 257.85 | 73.98 | 63.75 | 114.76 | 166.27 | 18.92 | 220.26 | 108.70 | 67.16 |
December 31, 2023 calculation
Financial leverage ratio = Total assets ÷ Total stockholders’ equity
= $4,272,180K ÷ $-368,576K
= —
The financial leverage ratio provides insights into Pitney Bowes, Inc.'s use of debt to support its operations and growth. The ratio fluctuated over the quarters, indicating changes in the company's capital structure. In Q1 2023 and Q4 2022, the financial leverage ratios were 75.56 and 78.17, respectively. These figures suggest that the company relied more on debt financing during these periods compared to Q2 2022 and Q1 2022, where the ratios were 105.94 and 51.54, respectively.
The trend in the financial leverage ratio implies variations in the level of financial risk undertaken by Pitney Bowes. Higher ratios indicate a higher proportion of debt used in the capital structure, which can amplify returns but also increase the riskiness of the firm. Conversely, lower ratios suggest a lower reliance on debt, which may lead to lower returns but lower financial risk as well.
Overall, the fluctuating financial leverage ratio of Pitney Bowes, Inc. over the quarters reflects the company's strategic decisions regarding capital structure and its ability to balance the benefits and risks associated with debt financing.