Pitney Bowes Inc (PBI)

Solvency ratios

	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
Debt-to-assets ratio	0.49	0.48	0.43	0.42	0.46	0.48	0.47	0.46	0.46	0.47	0.46	0.49	0.45	0.50	0.50	0.52	0.50	0.46	0.53	0.52
Debt-to-capital ratio	1.21	1.06	1.04	0.97	0.97	1.00	0.98	0.96	0.95	0.98	0.98	0.99	0.97	0.97	0.98	0.99	0.90	0.99	0.98	0.97
Debt-to-equity ratio	—	—	—	31.86	35.82	—	49.71	23.68	20.41	47.55	43.67	126.23	33.25	32.00	57.28	87.22	9.41	101.03	57.19	35.25
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

The solvency ratios of Pitney Bowes, Inc. show the company's ability to meet its long-term financial obligations and are an indicator of its financial stability and leverage position.

1. Debt-to-assets ratio:
- The debt-to-assets ratio has been relatively stable over the quarters, ranging from 0.46 to 0.50. This indicates that approximately 46%-50% of the company's assets are financed by debt.
- The consistency in this ratio suggests that Pitney Bowes has been managing its debt levels in relation to its total assets effectively.

2. Debt-to-capital ratio:
- The debt-to-capital ratio has shown a slight increase from 0.96 to 1.21 over the quarters. This indicates that the proportion of debt used to finance the company's operations in relation to its total capital has increased.
- The rising trend in this ratio may suggest that Pitney Bowes has been utilizing more debt in its capital structure, which could lead to higher financial risk.

3. Debt-to-equity ratio:
- The debt-to-equity ratio has shown significant fluctuations, with values of 23.95, 36.36, and 50.27 in the provided quarters. This indicates varying levels of debt relative to equity financing.
- The high values in some quarters, such as 50.27, may signal that the company is heavily reliant on debt to finance its operations, which could potentially lead to financial instability if not managed carefully.

4. Financial leverage ratio:
- The financial leverage ratio has also exhibited fluctuations, with values of 51.54, 78.17, and 105.94 in the given quarters. This ratio quantifies the company's total assets relative to its equity capital.
- The significant variations in the financial leverage ratio suggest that Pitney Bowes has been undergoing changes in the mix of debt and equity financing, which could impact its overall financial risk and profitability.

In conclusion, Pitney Bowes, Inc.'s solvency ratios reflect the company's management of debt and capital structure. The varying trends in these ratios highlight the importance of maintaining a balance between debt and equity financing to ensure long-term financial stability and sustainable growth.

Coverage ratios

	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
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

The interest coverage ratio for Pitney Bowes, Inc. has been fluctuating over the past eight quarters. It indicates the company's ability to fulfill its interest obligations from its operating income. The declining trend from Q4 2022 to Q3 2023 (1.46 to 0.86) raises concerns as it suggests a weakening capacity to meet interest payments. However, there was a slight improvement in Q4 2023 compared to the previous quarter. Overall, the ratios have been below 1 in recent quarters, indicating that the company's operating income is not sufficient to cover its interest expenses. This situation may raise questions about Pitney Bowes' financial stability and ability to service its debt effectively.