Pitney Bowes Inc (PBI)
Interest coverage
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 | ||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Earnings before interest and tax (EBIT) (ttm) | US$ in thousands | -306,057 | -76,016 | -52,280 | 94,067 | 129,860 | 123,296 | 121,336 | 152,136 | 84,613 | 106,761 | 113,974 | 104,754 | -67,501 | 89,959 | 51,576 | 67,119 | 292,512 | 154,041 | 257,754 | 286,889 |
Interest expense (ttm) | US$ in thousands | 100,445 | 95,208 | 92,111 | 90,198 | 89,980 | 89,886 | 90,513 | 93,852 | 96,886 | 100,065 | 102,928 | 105,028 | 105,753 | 106,089 | 107,618 | 109,191 | 110,910 | 110,329 | 108,213 | 110,969 |
Interest coverage | -3.05 | -0.80 | -0.57 | 1.04 | 1.44 | 1.37 | 1.34 | 1.62 | 0.87 | 1.07 | 1.11 | 1.00 | -0.64 | 0.85 | 0.48 | 0.61 | 2.64 | 1.40 | 2.38 | 2.59 |
December 31, 2023 calculation
Interest coverage = EBIT (ttm) ÷ Interest expense (ttm)
= $-306,057K ÷ $100,445K
= -3.05
Pitney Bowes, Inc.'s interest coverage ratio, which is a measure of the company's ability to meet its interest obligations, has been declining over the past eight quarters. The ratio indicates how many times the company can cover its interest expenses with its operating income. A lower ratio suggests that the company may be facing challenges in meeting its interest payments using its current level of operating earnings.
In Q4 2023, Pitney Bowes, Inc.'s interest coverage ratio was 0.83, which means the company generated operating earnings just enough to cover its interest expenses around 0.83 times. Comparing this to the previous quarters, the trend shows a consistent decrease in the ratio from Q4 2022 to Q4 2023.
The declining trend in interest coverage could indicate that Pitney Bowes, Inc. may be experiencing financial strain or facing challenges in generating sufficient operating income to cover its interest expenses. Investors and creditors might view this trend as a potential risk, as a declining interest coverage ratio could suggest reduced financial stability and potential difficulty in meeting debt obligations if the trend continues. It would be important for the company to closely monitor its interest coverage ratio and take necessary actions to improve its financial health and long-term sustainability.