ZoomInfo Technologies Inc. (GTM)

Short-term

Turnover ratios

The analysis of ZoomInfo Technologies Inc.'s activity ratios, based on available data, indicates notable trends and fluctuations across different periods.

Inventory Turnover: The company's inventory turnover ratio is consistently reported as unavailable, suggesting that inventory activity is either negligible or not applicable, which aligns with the company's core focus on digital and SaaS-based services rather than physical inventory management.

Receivables Turnover: There has been considerable variability in receivables turnover ratios over the periods. Beginning at 4.10 on June 30, 2020, the ratio generally increased, reaching a peak of 6.30 on June 30, 2024, before declining again to 0.41 in September 2024, and then marginally rising to 4.72 in December 2024. Elevated receivables turnover ratios imply more efficient collection of accounts receivable, indicative of effective credit policies and perhaps shorter collection periods. The significant drop to 0.41 in September 2024 suggests a potential collection issue, a change in receivables management, or data irregularities, given the abrupt decline. The subsequent partial recovery indicates possible stabilization or adjustment in collection practices.

Payables Turnover: The payables turnover ratio shows a downward trend from 9.14 (June 2020) to a low of 4.94 (September 2021), followed by fluctuations. Notably, a sharp increase to 12.08 occurs at the end of 2024, implying the company might be delaying payments longer or negotiating extended supplier terms, thereby managing its liquidity or cash flow positions strategically. The high ratio indicates faster payments to suppliers, which could reflect improved cash flow or supplier credit terms.

Working Capital Turnover: This ratio exhibits significant variability. Initially, it ranged from 2.84 to 3.84 in 2020 and early 2021. A remarkable spike to 830.75 in September 2021 is observed, which is likely an anomaly or a data recording issue. After this anomaly, the ratio declined to more consistent levels between 4.02 and 21.60, reflecting changes in working capital management efficiency. A notable increase to 16.41 in March 2024 suggests improved utilization of working capital relative to sales.

Overall, these ratios reveal that ZoomInfo has experienced periods of efficiency in receivable collections and payables management, with some irregularities suggestive of potential data anomalies or shifts in operating strategies. The fluctuations indicate adaptive management of working capital components to optimize liquidity and operational efficiency in a rapidly changing business environment.

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Average number of days

The activity ratios for ZoomInfo Technologies Inc. over the period under review show notable trends in operational efficiency and cash conversion cycles.

Days of Inventory on Hand (DOH): The data for DOH is unavailable, indicating that the company either does not maintain physical inventory or how it manages inventory is not applicable to its operational model, which is typical for a SaaS or digital platform provider.

Days of Sales Outstanding (DSO): The DSO figures illustrate fluctuations in the company's receivables collection period. Starting at approximately 89 days in June 2020, there was a general downward trend through 2021 and mid-2022, reaching approximately 57.90 days by June 2024, suggesting improved collection efficiency. However, in late 2023, DSO increased significantly to around 81.83 days and further soared to approximately 895 days by March 2025, which indicates a dramatic deterioration in receivables management or possible reporting anomalies, potentially reflecting credit policy changes, collection issues, or data irregularities.

Number of Days of Payables: The payables period fluctuates throughout the period. It was around 39.93 days in June 2020, decreasing to about 29.20 days in December 2020, then increasing significantly to roughly 73.95 days in September 2021. Subsequent data shows variability, with the payables period averaging around 40 to 50 days, and reaching roughly 30 to 35 days in late 2024 and early 2025. The decrease toward the end of the period may indicate a focus on paying suppliers more promptly or a change in payment terms.

Overall Analysis: The absence of inventory turnover data aligns with the company's likely digital or service-oriented business model, where inventory management is not relevant. The improvements in DSO from 2020 to mid-2022 suggest more efficient receivables management and cash flow control. Nonetheless, the extraordinary spike in DSO in late 2023 and early 2024 warrants further investigation, as it suggests either extraordinary collection delays or possible data inconsistency. The fluctuating payable days demonstrate a dynamic approach to managing payables, possibly aligning payment terms with operational needs or liquidity strategies.

In summary, ZoomInfo exhibits a trend toward more efficient receivables collection over most of the period, coupled with fluctuating payable periods, and an absence of inventory activity consistent with its business focus on digital services. The dramatic spikes in receivables in late 2023 and early 2024 should be closely examined to understand their underlying causes.

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Long-term

The analysis of ZoomInfo Technologies Inc.’s long-term activity ratios reveals the following insights based on the provided data:

Fixed Asset Turnover: The fixed asset turnover ratio data is unavailable throughout the reporting period, indicating either limited or no allocation of fixed assets in the company's operations during this timeframe. This could suggest that the company's business model relies minimally on fixed assets, which is typical for software and SaaS-oriented firms where tangible assets are less significant.

Total Asset Turnover: The total asset turnover ratio exhibits a gradual upward trend over the period from mid-2020 to early 2025. Starting at 0.19 in June 2020, it shows some fluctuations but maintains an overall increasing trajectory, reaching approximately 0.19 by the end of the observed period.

This incremental improvement indicates that the company has become slightly more efficient in generating revenue from its total assets over time. Given the consistency, it suggests stable operational efficiency with modest gains in asset utilization. The consistent growth in total asset turnover, especially after a period of initial fluctuation, points toward an ongoing effort to optimize asset use, which may reflect strategic investments or operational streamlining.

Overall, the absence of fixed asset turnover data and the steady increase in total asset turnover suggest that ZoomInfo relies predominantly on intangible assets or computational infrastructure rather than physical assets, with a gradual enhancement in operational efficiency in asset utilization over the analyzed period.