ZoomInfo Technologies Inc. (GTM)
Cash ratio
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Cash and cash equivalents | US$ in thousands | 139,900 | 447,100 | 418,000 | 308,300 | 269,800 |
| Short-term investments | US$ in thousands | 82,200 | 82,200 | 127,700 | 18,400 | 30,600 |
| Total current liabilities | US$ in thousands | 652,100 | 638,400 | 572,700 | 507,600 | 320,800 |
| Cash ratio | 0.34 | 0.83 | 0.95 | 0.64 | 0.94 |
December 31, 2024 calculation
Cash ratio = (Cash and cash equivalents + Short-term investments) ÷ Total current liabilities
= ($139,900K
+ $82,200K)
÷ $652,100K
= 0.34
The cash ratio of ZoomInfo Technologies Inc. over the period from December 31, 2020, to December 31, 2024, exhibits notable fluctuations that reflect changing liquidity positions.
In 2020, the cash ratio was 0.94, indicating that the company's cash and cash equivalents were nearly sufficient to cover its current liabilities, suggesting a strong liquidity position. The ratio declined significantly in 2021 to 0.64, signaling a reduction in the company's immediate liquidity cushion, potentially due to increased current liabilities or decreased cash holdings.
By 2022, the ratio recovered to 0.95, slightly exceeding the 2020 level, which indicates an improvement back to a position where cash and cash equivalents are nearly sufficient to cover current liabilities, implying enhanced liquidity management or cash accumulation.
However, in 2023, the ratio decreased again to 0.83, reflecting a minor deterioration but still maintaining a relatively comfortable liquidity margin. This downward trend continues into 2024, with the ratio falling sharply to 0.34, indicating a significant decline in the company's ability to cover current liabilities with cash and cash equivalents alone.
Overall, the trend shows periods of both strengthening and weakening liquidity, culminating in a substantial reduction in 2024. This could suggest a strategic shift in cash management, increased current liabilities, or changes in cash reserves. The fluctuations underscore the importance of analyzing accompanying financial statements to understand the underlying causes of these changes fully.
Peer comparison
Dec 31, 2024