ZoomInfo Technologies Inc. (GTM)
Return on total capital
| 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Earnings before interest and tax (EBIT) (ttm) | US$ in thousands | 31,100 | 70,700 | 287,500 | 314,100 | 395,500 | 434,000 | 232,500 | 223,000 | 194,400 | 147,300 | 194,000 | 150,800 | 153,400 | 144,700 | 122,700 | 126,500 | 38,900 | 34,800 | 12,700 | 3,600 |
| Long-term debt | US$ in thousands | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — |
| 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 |
| Return on total capital | 1.89% | 4.17% | 17.23% | 16.86% | 19.72% | 20.48% | 10.33% | 9.50% | 8.38% | 6.48% | 8.83% | 7.10% | 7.45% | 7.24% | 6.87% | 20.53% | 7.02% | 6.92% | 3.40% | 0.93% |
March 31, 2025 calculation
Return on total capital = EBIT (ttm) ÷ (Long-term debt + Total stockholders’ equity)
= $31,100K ÷ ($—K + $1,646,100K)
= 1.89%
The analysis of ZoomInfo Technologies Inc.'s return on total capital (ROTC) over the specified periods reveals significant fluctuations, indicating variability in the company's ability to generate profits from its invested capital. During the initial period ending June 30, 2020, the ROTC was quite low at approximately 0.93%, suggesting limited efficiency in capital utilization at that time. This trend improved markedly by September 30, 2020, reaching 3.40%, and continued to ascend sharply, peaking at 20.53% on June 30, 2021. The substantial increase during this interval reflects a period of heightened efficiency in generating returns from total capital.
Following this peak, the ROTC experienced fluctuations, decreasing again to around 6.87% by September 30, 2021, then stabilizing near 7% through most of 2022. The data indicates a modest recovery with values such as 8.83% on September 30, 2022, and approximately 8.38% to 9.50% during 2023, culminating in a notable peak of approximately 20.48% at the end of 2023. This period signifies a phase of improved profitability relative to total capital employed.
However, the trend demonstrates volatility into 2024, with ROTC decreasing to 19.72% in the first quarter but subsequently declining to 16.86% by June 30, 2024, and further slightly rising to 17.23% in September 2024. The decline becomes more pronounced thereafter, with the value dropping sharply to 4.17% at the end of December 2024, and further diminishing to approximately 1.89% in the first quarter of 2025.
Overall, the data illustrates periods of strong profitability interspersed with notable declines. The peaks suggest moments of effective capital utilization, while the subsequent downturns may reflect changing market conditions, strategic adjustments, or investment impacts. The recent downward trend towards early 2025 indicates a reduction in efficiency in converting total capital into earnings, warranting further analysis to identify underlying causes and potential implications for the company's financial health.
Peer comparison
Mar 31, 2025