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Pinterest (NYSE:PINS) Financial Strength

: 9 (As of Jun. 2023)
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Pinterest has the Financial Strength Rank of 9. It shows strong financial strength and is unlikely to fall into distressed situations.

Good Sign:

Pinterest Inc shows strong financial strength.

GuruFocus Financial Strength Rank measures how strong a company's financial situation is. It is based on these factors:

1. The debt burden that the company has as measured by its Interest Coverage (current year). The higher, the better.
2. Debt to revenue ratio. The lower, the better.
3. Altman Z-Score.

GuruFocus does not calculate Pinterest's interest coverage with the available data. Pinterest's debt to revenue ratio for the quarter that ended in Jun. 2023 was 0.06. As of today, Pinterest's Altman Z-Score is 21.47.


Competitive Comparison

For the Internet Content & Information subindustry, Pinterest's Financial Strength, along with its competitors' market caps and Financial Strength data, can be viewed below:

* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.

   

Pinterest Financial Strength Distribution

For the Interactive Media industry and Communication Services sector, Pinterest's Financial Strength distribution charts can be found below:

* The bar in red indicates where Pinterest's Financial Strength falls in comparison to its industry or sector. The grey bar indicates the Financial Strength's extreme value range as defined by GuruFocus.



Pinterest Financial Strength Calculation

GuruFocus Financial Strength Rank measures how strong a company's financial situation is. It is based on these factors

A company ranks high with financial strength is likely to withstand any business slowdowns and recessions.

1. The debt burden that the company has as measured by its Interest Coverage (current year). The higher, the better.

Note: If both Interest Expense and Interest Income are empty, while Net Interest Income is negative, then use Net Interest Income as Interest Expense.

Interest Coverage is a ratio that determines how easily a company can pay interest expenses on outstanding debt. It is calculated by dividing a company's Operating Income (EBIT) by its Interest Expense:

Pinterest's Interest Expense for the months ended in Jun. 2023 was $0 Mil. Its Operating Income for the months ended in Jun. 2023 was $-73 Mil. And its Long-Term Debt & Capital Lease Obligation for the quarter that ended in Jun. 2023 was $163 Mil.

Pinterest's Interest Coverage for the quarter that ended in Jun. 2023 is

GuruFocus does not calculate Pinterest's interest coverage with the available data.

The higher the ratio, the stronger the company's financial strength is.

2. Debt to revenue ratio. The lower, the better.

Pinterest's Debt to Revenue Ratio for the quarter that ended in Jun. 2023 is

Debt to Revenue Ratio=Total Debt (Q: Jun. 2023 ) / Revenue
=(Short-Term Debt & Capital Lease Obligation + Long-Term Debt & Capital Lease Obligation) / Revenue
=(0 + 163.015) / 2832.1
=0.06

3. Altman Z-Score.

Z-Score model is an accurate forecaster of failure up to two years prior to distress. It can be considered the assessment of the distress of industrial corporations.

The zones of discrimination were as such:

When Z-Score is less than 1.81, it is in Distress Zones.
When Z-Score is greater than 2.99, it is in Safe Zones.
When Z-Score is between 1.81 and 2.99, it is in Grey Zones.

Pinterest has a Z-score of 21.47, indicating it is in Safe Zones. This implies the Z-Score is strong.

Good Sign:

Altman Z-score of 21.47 is strong.

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.


Pinterest  (NYSE:PINS) Financial Strength Explanation

The maximum rank is 10. Companies with rank 7 or higher will be unlikely to fall into distressed situations. Companies with rank of 3 or less are likely in financial distress.

Pinterest has the Financial Strength Rank of 9. It shows strong financial strength and is unlikely to fall into distressed situations.


Pinterest Financial Strength Related Terms

Thank you for viewing the detailed overview of Pinterest's Financial Strength provided by GuruFocus.com. Please click on the following links to see related term pages.


Pinterest (NYSE:PINS) Business Description

Pinterest logo
Traded in Other Exchanges
Address
505 Brannan Street, San Francisco, CA, USA, 94107
Pinterest is an online product and idea discovery platform that helps users gather ideas on everything from recipes to cook to destinations to travel to. Founded in 2010, the platform consists of a largely female audience, at roughly two thirds of its 450 million monthly active users. The company generates revenue by selling digital ads and is now rolling out more in-platform e-commerce features.
Executives
Donnelly Julia Brau officer: Chief Financial Officer C/O PINTEREST, INC., 651 BRANNAN STREET, SAN FRANCISCO CA 94107
Sabrina Ellis officer: Chief Product Officer 651 BRANNAN ST., SAN FRANCISCO CA 94107
Malik Ducard officer: Chief Content Officer 651 BRANNAN ST., SAN FRANCISCO CA 94107
Christine Deputy officer: Chief People Officer 130 ROYALL STREET, CANTON MA 02021
Marc Steinberg director 600 STEAMBOAT ROAD, 3RD FLOOR, GREENWICH CT 06830
Wanjiku Juanita Walcott officer: Chief Legal Officer 2500 LAKE COOK ROAD, RIVERWOODS IL 60015
William J Ready director, officer: Chief Executive Officer C/O PAYPAL HOLDINGS, INC., 2211 NORTH FIRST STREET, SAN JOSE CA 95131
Andrea Acosta officer: Chief Accounting Officer C/O BIOMARIN PHARMACEUTICAL INC., 770 LINDARO ST, SAN RAFAEL CA 94901
Naveen Gavini officer: SVP, Products 505 BRANNAN ST., SAN FRANCISCO CA 94107
Salaam Coleman director 505 BRANNAN ST., SAN FRANCISCO CA 94701
Andrea M Wishom director 651 BRANNAN ST., SAN FRANCISCO CA 94107
L Michelle Wilson director PO BOX 81226, SEATTLE WA 98108-1226
Jeremy S. Levine director C/O BESSEMER VENTURE PARTNERS, 1865 PALMER AVENUE, LARCHMONT NY 10538
Fredric G Reynolds director PINTEREST, INC., 651 BRANNAN, SAN FRANCISCO CA 94107
Leslie J Kilgore director 121 ALBRIGHT WAY, LOS GATOS CA 95032