Post a Free Blog

Submit A Press Release

At CWEB, we are always looking to expand our network of strategic investors and partners. If you're interested in exploring investment opportunities or discussing potential partnerships and serious inquiries. Contact: jacque@cweb.com

Generic selectors
Exact matches only
Search in title
Search in content
Post Type Selectors
Filter by Categories
Action
Animation
ATP Tour (ATP)
Auto Racing
Baseball
Basketball
Boxing
Breaking News
Business
Business
Business Newsletter
Call of Duty (CALLOFDUTY)
Canadian Football League (CFL)
Car
Celebrity
Champions Tour (CHAMP)
Comedy
CONCACAF
Counter Strike Global Offensive (CSGO)
Crime
Dark Comedy
Defense of the Ancients (DOTA)
Documentary and Foreign
Drama
eSports
European Tour (EPGA)
Fashion
FIFA
FIFA Women’s World Cup (WWC)
FIFA World Cup (FIFA)
Fighting
Football
Formula 1 (F1)
Fortnite
Golf
Health
Hockey
Horror
IndyCar Series (INDY)
International Friendly (FRIENDLY)
Kids & Family
League of Legends (LOL)
LPGA
Madden
Major League Baseball (MLB)
Mixed Martial Arts (MMA)
MLS
Movie and Music
Movie Trailers
Music
Mystery
NASCAR Cup Series (NAS)
National Basketball Association (NBA)
National Football League (NFL)
National Hockey League (NHL)
National Women's Soccer (NWSL)
NBA Development League (NBAGL)
NBA2K
NCAA Baseball (NCAABBL)
NCAA Basketball (NCAAB)
NCAA Football (NCAAF)
NCAA Hockey (NCAAH)
Olympic Mens (OLYHKYM)
Other
Other Sports
Overwatch
PGA
Politics
Premier League (PREM)
Romance
Sci-Fi
Science
Soccer
Sports
Sports
Technology
Tennis
Thriller
Truck Series (TRUCK)
True Crime
Ultimate Fighting Championship (UFC)
US
Valorant
Western
Women’s National Basketball Association (WNBA)
Women’s NCAA Basketball (WNCAAB)
World
World Cup Qualifier (WORLDCUP)
WTA Tour (WTA)
Xfinity (XFT)
XFL
0
-- Advertisement --spot_img
HomeBusinessPinterest, Inc. (NYSE:PINS) Financial Performance Analysis

Pinterest, Inc. (NYSE:PINS) Financial Performance Analysis

Add to Favorite
Added to Favorite


Pinterest’s Return on Invested Capital (ROIC) of 24.79% significantly exceeds its Weighted Average Cost of Capital (WACC) of 8.29%, indicating efficient capital utilization.
Compared to peers, Pinterest’s ROIC to WACC ratio of 2.99 showcases its superior value creation for shareholders.
DocuSign, Inc. (DOCU) has the highest ROIC to WACC ratio among peers, highlighting its exceptional efficiency in generating returns relative to its cost of capital.

Pinterest, Inc. (NYSE:PINS) is a social media company that stands out in the digital landscape by offering a unique visual discovery engine. Unlike its competitors such as Facebook and Instagram, Pinterest focuses on helping users discover and save ideas through images and videos. The platform’s business model is primarily based on advertising revenue, which hinges on user engagement and its ability to attract advertisers.

In assessing Pinterest’s financial health, two critical metrics are considered: the Return on Invested Capital (ROIC) and Weighted Average Cost of Capital (WACC). Pinterest boasts a ROIC of 24.79%, which significantly outperforms its WACC of 8.29%, resulting in a ROIC to WACC ratio of 2.99. This impressive ratio not only demonstrates Pinterest’s efficient capital utilization but also its robust value creation for shareholders.

When juxtaposed with its industry counterparts, Pinterest’s financial efficiency becomes even more evident. For example, Zoom Video Communications, Inc. (ZM) presents a ROIC of 6.71% against a WACC of 7.75%, leading to a ROIC to WACC ratio of 0.87. This comparison suggests that Zoom is not as effective as Pinterest in generating returns above its cost of capital. Similarly, Etsy, Inc. (ETSY), CrowdStrike Holdings, Inc. (CRWD), and Roku, Inc. (ROKU) exhibit lower ROIC to WACC ratios, indicating less efficient capital management in comparison to Pinterest.

However, DocuSign, Inc. (DOCU) emerges as a standout with a ROIC to WACC ratio of 4.80, the highest among the analyzed peers. With a ROIC of 44.84% and a WACC of 9.35%, DocuSign exemplifies exceptional efficiency in generating returns relative to its cost of capital, surpassing even Pinterest’s commendable performance.

Subscribe to get Latest News Updates

Latest News

You may like more
more