Pitney Bowes Inc (PBI)

Interest coverage is a key financial ratio used to evaluate a company's ability to meet its interest obligations on outstanding debt. A higher interest coverage ratio indicates that the company is more capable of servicing its debt.

In the case of Pitney Bowes Inc, the interest coverage ratio has fluctuated over the past five years. The ratio was negative in December 2020, indicating that the company's operating income was insufficient to cover its interest expense. This is a concerning sign as it suggests potential financial distress.

However, the interest coverage ratio improved in the subsequent years, reaching 1.04 in December 2021 and 0.94 in December 2022. While these ratios are still relatively low, they indicate that the company's operating income is starting to better cover its interest payments.

The interest coverage ratio then deteriorated significantly to -6.42 in December 2023, signaling a concerning financial situation where the company's operating income is insufficient to cover its interest expenses multiple times over.

In the most recent year, December 2024, the interest coverage ratio slightly improved to 0.70, but it remains at a low level, suggesting that Pitney Bowes Inc may still be facing challenges in meeting its interest obligations.

Overall, Pitney Bowes Inc's interest coverage ratio has shown volatility and inconsistency over the past five years, indicating potential financial instability and the need for closer monitoring of the company's debt management practices.