6/21/2023 0 Comments Pinterest nyse pins![]() ![]() Assuming all else is equal, companies that have both a higher return on equity and higher profit retention are usually the ones that have a higher growth rate when compared to companies that don't have the same features. Depending on how much of these profits the company reinvests or "retains", and how effectively it does so, we are then able to assess a company's earnings growth potential. ![]() So far, we've learned that ROE is a measure of a company's profitability. What Has ROE Got To Do With Earnings Growth? So, this means that for every $1 of its shareholder's investments, the company generates a profit of $0.11. The 'return' refers to a company's earnings over the last year. So, based on the above formula, the ROE for Pinterest is:ġ1% = US$333m ÷ US$3.1b (Based on the trailing twelve months to March 2022). Return on Equity = Net Profit (from continuing operations) ÷ Shareholders' Equity In short, ROE shows the profit each dollar generates with respect to its shareholder investments.Ĭheck out our latest analysis for Pinterest How Is ROE Calculated? Return on Equity or ROE is a test of how effectively a company is growing its value and managing investors' money. In this article, we decided to focus on Pinterest's ROE. Given that fundamentals usually drive long-term market outcomes, the company is worth looking at. However, a closer look at its sound financials might cause you to think again. Pinterest (NYSE:PINS) has had a rough three months with its share price down 32%. ![]()
0 Comments
Leave a Reply. |