ZoomInfo Technologies Inc. (GTM)

Cash conversion cycle

		Mar 31, 2025	Dec 31, 2024	Sep 30, 2024	Jun 30, 2024	Mar 31, 2024	Dec 31, 2023	Sep 30, 2023	Jun 30, 2023	Mar 31, 2023	Dec 31, 2022	Sep 30, 2022	Jun 30, 2022	Mar 31, 2022	Dec 31, 2021	Sep 30, 2021	Jun 30, 2021	Mar 31, 2021	Dec 31, 2020	Sep 30, 2020	Jun 30, 2020
Days of inventory on hand (DOH)	days	—	—	—	—	—	—	—	—	—	—	—	—	—	—	—	—	—	—	—	—
Days of sales outstanding (DSO)	days	895.23	77.40	883.79	57.90	69.47	81.83	69.08	64.38	69.74	74.09	60.77	65.20	74.65	93.74	66.56	70.79	81.26	94.74	80.67	89.04
Number of days of payables	days	31.33	30.20	39.01	38.02	35.19	68.43	40.56	44.91	49.78	68.97	44.71	42.90	41.62	42.45	73.95	67.64	43.72	29.20	35.62	39.93
Cash conversion cycle	days	863.90	47.20	844.77	19.88	34.28	13.41	28.52	19.46	19.96	5.12	16.06	22.30	33.03	51.29	-7.39	3.15	37.54	65.54	45.05	49.11

March 31, 2025 calculation

Cash conversion cycle = DOH + DSO – Number of days of payables
= — + 895.23 – 31.33
= 863.90

The analysis of ZoomInfo Technologies Inc.'s cash conversion cycle (CCC) over the specified periods reveals significant fluctuations, indicating variable operational efficiency and working capital management practices. Throughout the observed timeline, the CCC demonstrates both cyclical declines and substantial spikes.

From June 30, 2020, to September 30, 2020, the CCC slightly decreased from 49.11 days to 45.05 days, suggesting marginal improvements in managing receivables, payables, and inventory. An increase followed in December 31, 2020, reaching 65.54 days, indicating longer periods to convert investments into cash during that quarter.

A notable reduction occurred by March 31, 2021, when the CCC declined substantially to 37.54 days, followed by an almost immediate turnaround, with an extraordinary drop to 3.15 days on June 30, 2021. The subsequent quarter saw the CCC turning negative at -7.39 days on September 30, 2021, implying that the company was settling its payables faster than collecting receivables, thereby effectively generating cash early in the cycle.

By December 31, 2021, the CCC recovered to 51.29 days, indicating a return to longer cycle times. The trend continued with manageable fluctuations: 33.03 days on March 31, 2022, and further reductions to 22.30 days on June 30, 2022, and 16.06 days on September 30, 2022. The cycle remained relatively low through December 2022 at 5.12 days, then increased modestly to 19.96 days by March 31, 2023, and slightly rose to 19.46 days at June 30, 2023.

The cycle's upward movement resumed by September 30, 2023, reaching 28.52 days, before decreasing again to 13.41 days by December 31, 2023. Subsequently, minor fluctuations occurred, with the cycle at 34.28 days on March 31, 2024, and 19.88 days on June 30, 2024.

A dramatic anomaly is observed with the data reported as 844.77 days on September 30, 2024, and 863.90 days on March 31, 2025. These figures are likely data errors or anomalies, given the unrealistic extension of the cycle duration, and should be interpreted with caution.

Overall, the historical data show periods of both rapid cash conversion, characterized by negative or low days (notably in 2021), and periods of extended cycles. The shorter periods reflect improved operational efficiency and effective working capital management, while the exceptionally high values in late 2024 and early 2025 indicate possible data inaccuracies or unusual operational circumstances. The variability over time underscores shifts in operational strategies, credit policies, or market conditions affecting the company's cash flow management.