ZoomInfo Technologies Inc. (GTM)

Working capital turnover

		Dec 31, 2024	Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020
Revenue	US$ in thousands	1,214,300	1,239,500	1,098,000	747,200	476,200
Total current assets	US$ in thousands	451,000	864,300	832,000	545,700	454,200
Total current liabilities	US$ in thousands	652,100	638,400	572,700	507,600	320,800
Working capital turnover		—	5.49	4.23	19.61	3.57

December 31, 2024 calculation

Working capital turnover = Revenue ÷ (Total current assets – Total current liabilities)
= $1,214,300K ÷ ($451,000K – $652,100K)
= —

The analysis of ZoomInfo Technologies Inc.'s working capital turnover ratio over the specified period indicates notable fluctuations that reflect changes in the company's efficiency in utilizing its working capital to generate revenues. As of December 31, 2020, the ratio was 3.57, suggesting a relatively moderate efficiency level at that time. In 2021, there was a substantial increase to 19.61, signifying a significant improvement in the company’s ability to generate sales relative to its working capital. This spike could be attributed to operational efficiencies, strategic initiatives, or revenue growth that maximized the utilization of working capital.

Following this peak, the ratio declined sharply to 4.23 at the end of 2022, indicating a reduction in efficiency compared to the previous year. This decline may have resulted from increased working capital levels, a slowdown in revenue growth, or other operational factors impacting the turnover rate. Nonetheless, the ratio increased again in 2023 to 5.49, suggesting a partial recovery or improvement in working capital utilization, though still below the all-time high observed in 2021.

The data for 2024 is unavailable or not reported, which precludes further analysis for that year. Overall, the pattern demonstrates periods of rapid efficiency improvement followed by consolidation or decreases, reflecting potential shifts in operational strategy, market conditions, or working capital management. Continuous monitoring is recommended to assess whether the recent upward trend persists and to better understand the underlying factors influencing these fluctuations.