ZoomInfo Technologies Inc. (GTM)

Short-term

Turnover ratios

The activity ratios of ZoomInfo Technologies Inc. over the specified periods demonstrate notable trends and fluctuations across various operational metrics.

Inventory Turnover:
The inventory turnover ratio was reported at 6.76 times as of December 31, 2020. Beyond that date, data is unavailable, indicating that the company either did not hold significant inventory or that inventory management was not a central component of its operational model during subsequent periods.

Receivables Turnover:
The receivables turnover shows a steady, modest increase from 3.85 times at December 31, 2020, to 3.92 times at December 31, 2021. This upward trend continues more noticeably through 2022, reaching 4.69 times, and then slightly declining to 4.56 times in 2023 before rising again to 4.72 times in 2024. These fluctuations suggest a generally improving efficiency in collecting accounts receivable, with slight variations possibly reflecting changes in credit policies, customer payment terms, or overall sales growth.

Payables Turnover:
The payables turnover ratio exhibits more significant variation, decreasing from 12.50 times in 2020 to 8.60 times in 2021 and further declining to 5.29 times in 2022. This indicates a lengthening of the payables period or delays in payment to suppliers. In 2023, the ratio remains similar at 5.19 times, suggesting a stabilization at a lower activity level. Notably, in 2024, the ratio increases sharply to 11.43 times, implying an accelerated payment cycle or improved payables management, either through early payments or renegotiated terms.

Working Capital Turnover:
The working capital turnover ratio is reported at 3.57 times in 2020, then significantly increases to 19.61 times in 2021, indicating a substantial improvement in the efficiency of using working capital to generate sales during that period. Following this peak, the ratio decreases to 4.23 in 2022, then marginally increases to 5.49 in 2023. Data for 2024 is unavailable, preventing further analysis for that year. Overall, the pattern suggests that the company markedly enhanced its operational efficiency in 2021, possibly due to optimized working capital management or increased sales activity, but faced some normalization or challenges in subsequent years.

In synthesis, these activity ratios reflect a trajectory of operational improvements, particularly in receivables and working capital management, with notable shifts in payables policies. The inventory turnover ratio's limited data points imply that inventory management is less critical for the company's activity analysis, consistent with a service-oriented or software-driven business model typical of the industry.

---

Average number of days

The activity ratios of ZoomInfo Technologies Inc. reveal a dynamic operational profile over the periods presented, with particular attention to inventory management, receivables collection, and payables settlement.

Starting with the Days of Inventory on Hand (DOH), data is available solely for December 31, 2020, indicating an inventory holding period of approximately 54 days. The absence of subsequent DOH figures suggests either negligible or consistent inventory levels, possibly reflecting the company’s business model that may not emphasize inventory management or that inventory levels are immaterial for a service-oriented enterprise.

The Days of Sales Outstanding (DSO) metric reflects the efficiency of accounts receivable collections. From December 31, 2020, through December 31, 2024, a decreasing trend is observed, dropping from 94.74 days to approximately 77.40 days. This decline indicates an improvement in collecting receivables, suggesting that the company has become more effective in converting sales into cash over this period. Notwithstanding, a DSO hovering around 77 days still indicates a relatively extended collection cycle, characteristic of billing cycles typical in subscription or SaaS models.

Regarding the Number of Days Payables, there is a notable fluctuation. Starting from around 29.20 days in 2020, the figure rises significantly to 68.97 days in 2022, suggesting the company extended its payment terms or delayed payments to suppliers during that period. By December 31, 2024, the payables days decrease to approximately 31.92 days, reflecting a shortening of payment cycles and a potential tightening of payables management or improved cash flow management strategies.

In summary, based on these activity ratios, ZoomInfo Technologies Inc. appears to have optimized its receivables collection over the observed period while managing its payables with some flexibility, initially extending payment terms before returning to shorter cycles. The inventory holding period remains unstated beyond 2020, possibly indicating limited inventory reliance, consistent with a digital or subscription-based business model. Overall, these ratios suggest a balanced approach to managing working capital, with improvements in receivables collection efficiency and a strategic approach to payables management.

---

Long-term

Based on the provided data, ZoomInfo Technologies Inc. exhibits no reported fixed asset turnover ratios across the years 2020 through 2024, indicating the absence or negligible consideration of fixed assets in the asset management metrics or potentially the lack of significant fixed assets on the balance sheet.

In contrast, the total asset turnover ratio demonstrates a degree of variability over the five-year period. It declined substantially from 0.20 in 2020 to 0.11 in 2021, suggesting a reduced efficiency in utilizing total assets to generate revenues during that period. Subsequently, the ratio experienced a modest recovery, rising to 0.15 in 2022, and then further increasing to 0.18 in 2023, reaching 0.19 in 2024. This trend indicates a gradual improvement in asset utilization efficiency over time.

Overall, the data suggests that while fixed asset utilization has not been a focal point, the company's efficiency in using its total assets to generate sales has generally improved from 2021 onward, reflecting potential enhancements in operational efficiencies or shifts toward less asset-intensive business processes.