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Pinterest Altman Z-Score

: 18.01 (As of Today)
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Good Sign:

Altman Z-score of 17.44 is strong.

Pinterest has a Altman Z-Score of 18.01, indicating it is in Safe Zones. This implies the Altman Z-Score is strong.

The zones of discrimination were as such:

When Altman Z-Score <= 1.8, it is in Distress Zones.
When Altman Z-Score >= 3, it is in Safe Zones.
When Altman Z-Score is between 1.8 and 3, it is in Grey Zones.

The historical rank and industry rank for Pinterest's Altman Z-Score or its related term are showing as below:

PINS' s Altman Z-Score Range Over the Past 10 Years
Min: 13.34   Med: 26.79   Max: 80.63
Current: 17.44

During the past 5 years, Pinterest's highest Altman Z-Score was 80.63. The lowest was 13.34. And the median was 26.79.


Pinterest Altman Z-Score Historical Data

The historical data trend for Pinterest's Altman Z-Score can be seen below:

* 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.

* Premium members only.

Pinterest Annual Data
Trend Dec17 Dec18 Dec19 Dec20 Dec21
Altman Z-Score
- - 15.51 67.69 29.97

Pinterest Quarterly Data
Dec17 Mar18 Jun18 Sep18 Dec18 Mar19 Jun19 Sep19 Dec19 Mar20 Jun20 Sep20 Dec20 Mar21 Jun21 Sep21 Dec21 Mar22 Jun22
Altman Z-Score Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 80.63 44.91 29.97 22.61 14.20

Competitive Comparison

For the Internet Content & Information subindustry, Pinterest's Altman Z-Score, along with its competitors' market caps and Altman Z-Score 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 Altman Z-Score Distribution

For the Interactive Media industry and Communication Services sector, Pinterest's Altman Z-Score distribution charts can be found below:

* The bar in red indicates where Pinterest's Altman Z-Score falls into.



Pinterest Altman Z-Score Calculation

Altman 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.

Pinterest's Altman Z-Score for today is calculated with this formula:

Z=1.2*X1+1.4*X2+3.3*X3+0.6*X4+1.0*X5
=1.2*0.7838+1.4*-0.5595+3.3*0.0665+0.6*28.1664+1.0*0.7364
=18.01

* 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. GuruFocus does not calculate Altman Z-Score when X4 or X5 value is 0.

Trailing Twelve Months (TTM) ended in Jun. 2022:
Total Assets was $3,694 Mil.
Total Current Assets was $3,246 Mil.
Total Current Liabilities was $351 Mil.
Retained Earnings was $-2,067 Mil.
Pre-Tax Income was -40.392 + -4.153 + 176.841 + 94.449 = $227 Mil.
Interest Expense was -9.252 + -1.576 + -3.429 + -4.765 = $-19 Mil.
Revenue was 665.93 + 574.885 + 846.655 + 632.932 = $2,720 Mil.
Market Cap (Today) was $15,715 Mil.
Total Liabilities was $558 Mil.

* Note that for stock reported semi-annually or annually, GuruFocus uses latest annual data as the TTM data.

X1=Working Capital/Total Assets
=(Total Current Assets - Total Current Liabilities)/Total Assets
=(3246.07 - 350.855)/3694.032
=0.7838

X2=Retained Earnings/Total Assets
=-2066.968/3694.032
=-0.5595

X3=Earnings Before Interest and Taxes/Total Assets
=(Pre-Tax Income - Interest Expense)/Total Assets
=(226.745 - -19.022)/3694.032
=0.0665

X4=Market Value Equity/Book Value of Total Liabilities
=Market Cap/Total Liabilities
=15715.235/557.943
=28.1664

X5=Revenue/Total Assets
=2720.402/3694.032
=0.7364

The zones of discrimination were as such:

Distress Zones - 1.81 < Grey Zones < 2.99 - Safe Zones

Pinterest has a Altman Z-Score of 18.01 indicating it is in Safe Zones.

Study by Altman found that companies that are in Distress Zone have more than 80% of chances of bankruptcy in two years.


Pinterest  (NYSE:PINS) Altman Z-Score Explanation

X1: The Working Capital/Total Assets (WC/TA) ratio is a measure of the net liquid assets of the firm relative to the total capitalization. Working capital is defined as the difference between current assets and current liabilities. Ordinarily, a firm experiencing consistent operating losses will have shrinking current assets in relation to total assets. Altman found this one proved to be the most valuable liquidity ratio comparing with the current ratio and the quick ratio. This is however the least significant of the five factors.

X2: Retained Earnings/Total Assets: the RE/TA ratio measures the leverage of a firm. Retained earnings is the account which reports the total amount of reinvested earnings and/or losses of a firm over its entire life. Those firms with high RE, relative to TA, have financed their assets through retention of profits and have not utilized as much debt.

X3, Earnings Before Interest and Taxes/Total Assets (EBIT/TA): This ratio is a measure of the true productivity of the firm's assets, independent of any tax or leverage factors. Since a firm's ultimate existence is based on the earning power of its assets, this ratio appears to be particularly appropriate for studies dealing with corporate failure. This ratio continually outperforms other profitability measures, including cash flow.

X4, Market Value of Equity/Book Value of Total Liabilities (MVE/TL): The measure shows how much the firm's assets can decline in value (measured by market value of equity plus debt) before the liabilities exceed the assets and the firm becomes insolvent.

X5, Revenue/Total Assets (S/TA): The capital-turnover ratio is a standard financial ratio illustrating the sales generating ability of the firm's assets.

Read more about Altman Z-Score and the original research.


Be Aware

Altman Z-Score does not apply to financial companies.


Pinterest Altman Z-Score Related Terms

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


Pinterest 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 more than 365 million monthly active users. The company generates revenue by selling digital ads and is now rolling out more in-platform e-commerce features.
Executives
Acosta Andrea officer: Chief Accounting Officer C/O BIOMARIN PHARMACEUTICAL INC. 770 LINDARO ST SAN RAFAEL CA 94901
Gavini Naveen officer: SVP, Products 505 BRANNAN ST. SAN FRANCISCO CA 94107
Coleman Salaam director 505 BRANNAN ST. SAN FRANCISCO CA 94701
Wishom Andrea M director 651 BRANNAN ST. SAN FRANCISCO CA 94107
Reynolds Fredric G director CBS CORPORATION 51 WEST 52ND STREET NEW YORK NY 10019
Kilgore Leslie J director 100 WINCHESTER CIRCLE LOS GATOS CA 95032
Wilson L Michelle director PO BOX 81226 SEATTLE WA 98108-1226
Levine Jeremy S. director C/O BESSEMER VENTURE PARTNERS 1865 PALMER AVENUE LARCHMONT NY 10538
Rajaram Gokul director 301 CONGRESS AVENUE SUITE 700 AUSTIN TX 78701
Jordan Jeffrey D director 2865 SAND HILL ROAD #101 MENLO PARK CA 94025
Silbermann Benjamin director, 10 percent owner, officer: Chairman, President, CEO, Co-F 505 BRANNAN STREET SAN FRANCISCO CA 94107
Sharp Evan director, officer: Co-Founder & Chief Design & Cr 505 BRANNAN STREET SAN FRANCISCO CA 94107
Yang Tseli Lily officer: Chief Accounting Officer C/O MEDIVATION, INC. 525 MARKET ST., 36TH FLOOR SAN FRANCISCO CA 94105
Flores Christine officer: General Counsel 505 BRANNAN STREET SAN FRANCISCO CA 94107
Brougher Francoise officer: Chief Operating Officer 1455 MARKET STREET SUITE 600 SAN FRANCISCO CA 94103

Pinterest Headlines

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