ZoomInfo Technologies Inc. (GTM)
Financial leverage ratio
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Total assets | US$ in thousands | 6,467,600 | 6,868,300 | 7,136,400 | 6,852,900 | 2,327,400 |
| Total stockholders’ equity | US$ in thousands | 1,693,500 | 2,119,300 | 2,271,800 | 1,997,900 | 502,800 |
| Financial leverage ratio | 3.82 | 3.24 | 3.14 | 3.43 | 4.63 |
December 31, 2024 calculation
Financial leverage ratio = Total assets ÷ Total stockholders’ equity
= $6,467,600K ÷ $1,693,500K
= 3.82
The financial leverage ratio of ZoomInfo Technologies Inc. exhibits notable fluctuations over the specified period from December 31, 2020, through December 31, 2024. At the end of 2020, the ratio stood at 4.63, indicating a high degree of leverage, whereby the company relied substantially on debt financing relative to its equity.
In the subsequent year, 2021, the ratio decreased significantly to 3.43, reflecting a reduction in leverage and possibly an improvement in the company's capital structure or debt management. This declining trend continued into 2022, with the ratio reaching 3.14, further evidencing a continued narrowing of leverage and potentially indicating efforts to deleverage or improved equity levels.
However, in 2023, the ratio demonstrated a slight uptick to 3.24, suggesting a modest increase in reliance on debt compared to equity, though still relatively lower than the levels observed at the start of the period. The most recent data for 2024 indicates a further rise to 3.82, approaching the earlier high levels observed in 2020, which may point to an increased use of financial leverage or a change in the company's capital structure dynamics.
Overall, the trend of the financial leverage ratio over these years suggests that ZoomInfo Technologies Inc. initially reduced its dependence on debt from 2020 to 2022, before experiencing a gradual increase in leverage in 2023 and 2024. This pattern implies a strategic adjustment in debt levels or equity financing, with implications for the company's risk profile and financial stability.
Peer comparison
Dec 31, 2024