ZoomInfo Technologies Inc. (GTM)

The payables turnover ratio for ZoomInfo Technologies Inc. exhibits notable fluctuations over the analyzed period from December 31, 2020, to December 31, 2024. At the end of 2020, the ratio stood at 12.50, indicating that the company's accounts payable were paid approximately 12.5 times within the year, reflecting a relatively rapid payment cycle. By the end of 2021, the ratio declined significantly to 8.60, suggesting a lengthening in the period taken to settle payables or a change in payment policies.

This downward trend continued into 2022 and 2023, with ratios of 5.29 and 5.19 respectively. These lower ratios imply that the company extended its payment duration to suppliers, potentially indicative of strategic changes in cash management, negotiated payment terms, or shifts in vendor relationships. A lower payables turnover may also reflect increased working capital management or efforts to conserve cash.

However, at the end of 2024, there is a notable reversal with the ratio surging to 11.43. This rapid increase indicates a significant acceleration in settling payables, returning to levels comparable to 2020. Such a shift could suggest improvements in liquidity position, renegotiation of terms favoring quicker payments, or a strategic decision to reduce outstanding liabilities.

Overall, the trend in ZoomInfo’s payables turnover ratio demonstrates periods of both extension and contraction in the payment cycle, with a marked notable increase in 2024. This suggests dynamic management of payables and working capital over the reviewed period, highlighting responses to operational, financial, or strategic considerations.

Peer comparison

Dec 31, 2024