ZoomInfo Technologies Inc. (GTM)

Return on equity (ROE)

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
Net income (ttm) US$ in thousands 40,800 29,100 9,000 15,400 77,900 107,300 136,000 123,700 101,500 63,200 184,900 126,400 119,800 116,800 -2,600 42,900 14,000 8,200 9,000 -8,300
Total stockholders’ equity US$ in thousands 1,646,100 1,693,500 1,668,400 1,862,900 2,005,900 2,119,300 2,250,400 2,347,000 2,319,300 2,271,800 2,196,300 2,123,900 2,059,400 1,997,900 1,785,000 616,300 554,300 502,800 373,600 387,600
ROE 2.48% 1.72% 0.54% 0.83% 3.88% 5.06% 6.04% 5.27% 4.38% 2.78% 8.42% 5.95% 5.82% 5.85% -0.15% 6.96% 2.53% 1.63% 2.41% -2.14%

March 31, 2025 calculation

ROE = Net income (ttm) ÷ Total stockholders’ equity
= $40,800K ÷ $1,646,100K
= 2.48%

The analysis of ZoomInfo Technologies Inc.’s return on equity (ROE) over the specified period indicates notable fluctuations and trends. Initially, the company experienced a negative ROE of -2.14% as of June 30, 2020, suggesting that the company was incurring losses relative to shareholders' equity during that period. By September 30, 2020, the ROE improved to 2.41%, reflecting a positive turn and indicating better profitability and efficiency in generating returns for shareholders.

Throughout the subsequent quarters, the ROE demonstrated variability. It rose to 1.63% at the end of 2020 and continued an upward trajectory, reaching a peak of 6.96% by June 30, 2021. This peak signals a period of strong profitability relative to shareholders' equity, possibly due to increased revenue, improved net income margins, or optimized capital utilization.

However, the ROE exhibited considerable fluctuation afterward, with a decline to -0.15% in September 2021, indicating a temporary setback, followed by a recovery to 5.85% at the end of 2021. The positive trend persisted into 2022, with ROE levels ranging between approximately 2.78% and 8.42%, suggesting periods of consistent profitability and operational efficiency.

In 2023, ROE remained relatively stable, oscillating between about 3.88% and 6.04%, which indicates ongoing profitability but with some variability. Notably, in 2024, there was a downtrend: the ROE declined sharply to 0.83% by June 30, then further decreased to 0.54% on September 30, before somewhat recovering to 1.72% at the end of 2024. This downturn could reflect challenging market conditions, increased costs, or strategic shifts impacting net income relative to equity.

Looking forward, the projected ROE for March 2025 is estimated at 2.48%, indicating a modest recovery but still below the earlier peaks observed in 2021 and 2022. The overall trend from mid-2020 onward illustrates periods of recovery and growth interrupted by setbacks, highlighting the company's varying efficiency in generating profits from shareholders’ equity over time.

In conclusion, ZoomInfo’s ROE has experienced significant volatility, with periods of strong profitability interspersed with declines, reflecting changing operational conditions, market factors, and company-specific developments throughout this period.