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.