ZoomInfo Technologies Inc. (GTM)

Cash ratio

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
Cash and cash equivalents US$ in thousands 138,500 139,900 147,700 385,900 405,900 447,300 442,600 509,700 474,000 418,000 406,300 352,700 394,400 308,300 196,800 332,900 229,100 269,800 304,900 259,100
Short-term investments US$ in thousands 2,000 0 0 13,400 34,300 82,200 125,300 150,600 141,800 127,700 32,400 12,900 12,400 18,400 36,500 66,800 124,600 30,600 — —
Total current liabilities US$ in thousands 624,400 652,100 624,100 680,700 664,100 638,400 573,100 607,900 617,000 572,700 518,000 535,800 515,900 507,600 407,900 385,500 348,200 320,800 247,500 237,700
Cash ratio 0.23 0.21 0.24 0.59 0.66 0.83 0.99 1.09 1.00 0.95 0.85 0.68 0.79 0.64 0.57 1.04 1.02 0.94 1.23 1.09

March 31, 2025 calculation

Cash ratio = (Cash and cash equivalents + Short-term investments) ÷ Total current liabilities
= ($138,500K + $2,000K) ÷ $624,400K
= 0.23

The analysis of ZoomInfo Technologies Inc.'s cash ratio over the specified period reveals notable variability, reflecting shifts in liquidity positioning. At the earliest recorded date, June 30, 2020, the cash ratio stood at 1.09, indicating that the company's cash and cash equivalents were sufficient to cover its current liabilities, demonstrating a relatively conservative liquidity stance at that time.

Throughout the subsequent periods, the cash ratio exhibited fluctuations, reaching a peak of 1.23 on September 30, 2020, which further underscored strong short-term liquidity. However, the ratio declined modestly afterward, dipping below 1.00 to 0.94 by December 31, 2020, and fluctuating around the 1.00 mark through 2021, with values such as 1.02 (March 31, 2021), 1.04 (June 30, 2021), and a decrease to 0.57 on September 30, 2021. The latter figure indicates a reduction in the company's cash holdings relative to its current liabilities during this period.

In subsequent quarters, the cash ratio demonstrated a gradual recovery, rising to 0.85 by September 30, 2022, and reaching 0.95 on December 31, 2022. The beginning of 2023 marked a renewal of stability, with the ratio reaching 1.00 at March 31 and incrementally increasing to 1.09 by June 30, 2023. These figures suggest a period where liquidity was maintained at or above the level of current liabilities, affirming a buffer for short-term obligations.

However, the trend reversed in late 2023 and into 2024, with the ratio decreasing to 0.83 at December 31, 2023, and further declining to 0.66 by March 31, 2024. The subsequent quarters saw significant declines, with the ratio falling sharply to 0.24 on September 30, 2024, and continuing downward to 0.21 at December 31, 2024, and 0.23 on March 31, 2025. These declines indicate a substantial reduction in cash holdings relative to current liabilities, potentially reflecting increased operational expenditures, investments, or other strategic uses of cash.

Overall, the trend in the cash ratio points to periods of strong liquidity early on, followed by a gradual erosion over time, culminating in a markedly lower ratio in late 2024 and early 2025. This pattern may suggest a strategic shift in cash management, increased investments, or other factors impacting liquidity. The decline below the 1.00 threshold in recent periods indicates that cash and cash equivalents constitute a smaller proportion of current liabilities, which warrants further analysis of the company's overall liquidity strategy and resilience.