Pitney Bowes Inc (PBI)
Interest coverage
| Dec 31, 2024 | Sep 30, 2024 | Jun 30, 2024 | Mar 31, 2024 | 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Earnings before interest and tax (EBIT) (ttm) | US$ in thousands | 27,545 | -156,130 | -129,453 | -250,032 | -279,282 | -53,813 | -46,518 | 103,915 | 138,945 | 136,383 | 140,608 | 168,108 | 104,471 | 121,710 | 122,036 | 115,160 | -71,045 | -74,846 | -109,030 | -85,270 |
| Interest expense (ttm) | US$ in thousands | 174,668 | 178,530 | 177,847 | 170,798 | 163,307 | 154,863 | 149,064 | 144,921 | 141,769 | 139,403 | 138,048 | 140,627 | 143,945 | 147,542 | 150,321 | 152,587 | 153,915 | 153,358 | 154,287 | 154,964 |
| Interest coverage | 0.16 | -0.87 | -0.73 | -1.46 | -1.71 | -0.35 | -0.31 | 0.72 | 0.98 | 0.98 | 1.02 | 1.20 | 0.73 | 0.82 | 0.81 | 0.75 | -0.46 | -0.49 | -0.71 | -0.55 |
December 31, 2024 calculation
Interest coverage = EBIT (ttm) ÷ Interest expense (ttm)
= $27,545K ÷ $174,668K
= 0.16
The interest coverage ratio of Pitney Bowes Inc fluctuated significantly over the period from March 31, 2020, to December 31, 2024. The ratio started in negative territory, indicating challenges in meeting interest obligations with operating income. However, from March 31, 2021, there was a positive trend, signaling an improvement in the ability to cover interest expenses with operating profits.
During the period, the interest coverage ratio ranged from a low of -1.71 on December 31, 2023, to a high of 1.20 on March 31, 2022. The negative ratios suggest that the company's operating income was insufficient to cover its interest payments during those periods, raising concerns about financial stability.
Overall, the erratic nature of the interest coverage ratio for Pitney Bowes Inc indicates volatility in the company's financial performance and its ability to service its debt obligations from operating profits. Investors and stakeholders should closely monitor this ratio to assess the company's financial health and debt repayment capabilities.