ZoomInfo Technologies Inc. (GTM)

Return on equity (ROE)

		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 stockholders’ equity	US$ in thousands	1,693,500	2,119,300	2,271,800	1,997,900	502,800
ROE		1.72%	5.06%	2.78%	5.85%	-7.24%

December 31, 2024 calculation

ROE = Net income ÷ Total stockholders’ equity
= $29,100K ÷ $1,693,500K
= 1.72%

The return on equity (ROE) for ZoomInfo Technologies Inc. exhibits notable fluctuations over the analyzed period. At the end of December 31, 2020, the company experienced a negative ROE of -7.24%, indicating that it was unprofitable in terms of net income generated relative to shareholders' equity during that year. This negative figure suggests potential initial challenges or losses that impacted shareholder returns.

Moving into 2021, the ROE improved significantly to 5.85%, transitioning into positive territory and reflecting enhanced profitability and efficient utilization of shareholders’ equity. However, this upward trend was not sustained in subsequent years. By December 31, 2022, the ROE decreased to 2.78%, indicating a decline in net income relative to equity but still maintaining a positive return.

In 2023, the ROE rose again to 5.06%, surpassing the previous year's figure, which suggests a phase of improved profitability or operational efficiency. Nonetheless, the most recent data point for December 31, 2024, reveals a decline to 1.72%, indicating a weakening of profitability as measured by net income generated per dollar of shareholders' equity.

Overall, the company's ROE shows periods of recovery and growth interspersed with declines, with the figure oscillating around low single digits in recent years. These fluctuations could reflect variations in net income margins, changes in equity base, or operational adjustments. Continuous monitoring of underlying factors such as net income trends, equity structure, and operational efficiency is essential to fully understand the implications of these ROE movements for ZoomInfo Technologies Inc.'s financial health and shareholder value.