FMP
May 21, 2025(Last modified: May 22, 2025)
Pinterest, Inc. (NYSE:PINS) is a social media company that allows users to discover and save ideas through images and videos. It competes with other tech companies like Zoom Video Communications, Etsy, CrowdStrike Holdings, Roku, and DocuSign. These companies operate in different sectors but are often compared based on financial metrics like Return on Invested Capital (ROIC) and Weighted Average Cost of Capital (WACC).
Pinterest's ROIC is 24.79%, while its WACC is 7.95%, resulting in a ROIC to WACC ratio of 3.12. This indicates Pinterest is generating returns well above its cost of capital, showcasing efficient capital utilization. In comparison, Zoom's ROIC of 7.49% and WACC of 7.78% yield a ratio of 0.96, suggesting returns are just below its capital costs.
Etsy's ROIC of 11.44% against a WACC of 10.06% results in a ratio of 1.14, indicating returns slightly above its cost of capital. CrowdStrike, however, has a ROIC of 0.70% and a WACC of 9.77%, leading to a low ratio of 0.07, showing returns are far below its capital costs. Roku's negative ROIC of -5.81% and WACC of 13.27% result in a ratio of -0.44, indicating inefficiency in generating returns.
DocuSign stands out with a ROIC of 44.84% and a WACC of 9.74%, resulting in a high ROIC to WACC ratio of 4.60. This suggests DocuSign is the most efficient in capital utilization among its peers, generating returns significantly higher than its cost of capital. This efficiency highlights DocuSign's strong financial performance relative to its peers.
Introduction In the competitive landscape of modern business, companies that consistently outperform their peers ofte...
Introduction Apple (NASDAQ: AAPL) has been working to diversify its supply chain, reducing dependence on China due to...
MicroStrategy Incorporated (NASDAQ:MSTR) is a prominent business intelligence company known for its software solutions a...