ZoomInfo Technologies Inc. (GTM)

Return on assets (ROA)

		Dec 31, 2024	Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020
Net income	US$ in thousands	29,100	107,300	63,200	116,800	-36,400
Total assets	US$ in thousands	6,467,600	6,868,300	7,136,400	6,852,900	2,327,400
ROA		0.45%	1.56%	0.89%	1.70%	-1.56%

December 31, 2024 calculation

ROA = Net income ÷ Total assets
= $29,100K ÷ $6,467,600K
= 0.45%

The analysis of ZoomInfo Technologies Inc.'s return on assets (ROA) over the specified period reveals a pattern of initial negative profitability followed by a trend toward positive performance.

In 2020, the ROA was recorded at -1.56%, indicating that the company was generating a slight loss relative to its total assets during that fiscal year. This negative ROA could suggest challenges in operational efficiency or the impact of investments that had not yet yielded positive results.

By the end of 2021, the ROA improved to 1.70%, reflecting a significant turnaround. This transition into positive territory implies enhanced operational efficiency or revenue generation that outpaced asset utilization costs. Such an improvement could be attributed to operational restructuring, product development successes, or strategic initiatives that began to bear fruit.

In 2022, the ROA decreased modestly to 0.89%. Despite a slight decline, the company remained profitable on an asset basis. This reduction could be indicative of increased asset levels, higher expenses, or temporary operational headwinds, yet the overall positive ROA suggests continued constructive management of assets.

The year 2023 saw an increase in ROA to 1.56%, surpassing the previous year and indicating renewed or sustained efficiency gains. This improvement suggests that the company's strategic adjustments or market conditions contributed to better asset utilization and profitability.

However, in 2024, the ROA dropped to 0.45%, reflecting a decline in asset profitability. This decrease may be due to various factors, including increased investments, elevated costs, or competitive pressures impacting revenue margins. Despite this decline, the ROA remained positive, signaling ongoing operational efficiency but a potential need for strategic reassessment to restore higher profitability levels.

Overall, the trend indicates that ZoomInfo has transitioned from a period of negative returns to relatively stable positive ROA figures, albeit with signs of recent moderation. Continuous monitoring of asset utilization efficiency and profitability drivers will be essential to assess future prospects.