ZoomInfo Technologies Inc. (GTM)
Solvency ratios
| 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 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Debt-to-assets ratio | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Debt-to-capital ratio | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Debt-to-equity ratio | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Financial leverage ratio | 3.89 | 3.82 | 3.83 | 3.59 | 3.37 | 3.24 | 3.14 | 3.06 | 3.09 | 3.14 | 3.21 | 3.30 | 3.36 | 3.43 | 3.70 | 4.58 | 4.59 | 4.63 | 5.48 | 5.11 |
The analysis of ZoomInfo Technologies Inc.'s solvency ratios indicates a consistent financial position characterized by a remarkably conservative leverage profile.
Firstly, the debt-to-assets ratio, along with the debt-to-capital and debt-to-equity ratios, all uniformly display zero values across the examined periods from June 2020 through March 2025. This consistency suggests that the company has not employed any debt financing during this timeframe, implying that its capital structure is primarily equity-based with no significant liabilities.
Secondly, the financial leverage ratio reveals a more nuanced picture of the company’s leverage dynamics. Starting at approximately 5.11 in June 2020, it gradually declines over the subsequent periods, reaching around 3.09 by March 2023. Post-2023, the leverage ratio exhibits slight fluctuations, trending upward to nearly 3.89 by March 2025. This ratio, which measures the extent of financial leverage relative to equity, indicates that the company's degree of leverage has decreased initially and then stabilized at moderate levels.
Overall, ZoomInfo's solvence profile underscores minimal to no reliance on debt financing, highlighting a conservative and potentially risk-averse financial strategy. The stable and negligible debt ratios over an extended period reflect strong solvency and financial stability, minimizing bankruptcy or insolvency risks associated with high leverage. The moderate fluctuations in the financial leverage ratio in recent years suggest a measured approach to leverage management, with no significant escalation that could threaten financial stability.
Coverage ratios
| 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 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Interest coverage | 0.80 | 1.80 | 7.03 | 7.27 | 8.71 | 9.60 | 5.02 | 4.85 | 4.25 | 3.09 | 4.00 | 2.97 | 3.12 | 3.30 | 3.03 | 3.48 | 0.76 | 0.50 | 0.15 | 0.04 |
The interest coverage ratios for ZoomInfo Technologies Inc. demonstrate significant variation over the analyzed period from June 30, 2020, through March 31, 2025. Initially, the ratio was markedly low at 0.04 on June 30, 2020, indicating a very limited ability to cover interest expenses with operating earnings. This initial figure suggests that at that time, the company's earnings were insufficient to comfortably meet interest obligations, reflecting a period of financial stress or low profitability.
Throughout the subsequent quarters, the ratio showed a gradual improvement. By December 31, 2020, it had increased to 0.50, and further to 3.48 by June 30, 2021. This substantial rise signifies a notable strengthening in ZoomInfo’s capacity to service its interest expenses, likely due to increased earnings or improved operational efficiency.
From mid-2021 onwards, the ratio stabilized at relatively healthy levels, generally exceeding 3. with a peak of 9.60 recorded on December 31, 2023. This high ratio indicates a strong ability to meet interest obligations from operating earnings, reflecting a period of improved profitability and financial stability.
However, a declining trend is observed approaching March 2025, where the ratio drops to 0.80. This decline nearing the end of the forecasted period suggests a potential weakening in earnings relative to interest costs, raising concerns regarding the company's financial flexibility if such trends persist.
In summary, the interest coverage of ZoomInfo Technologies Inc. improved markedly from a very low point in mid-2020, reaching strong levels across 2022 and 2023, but appears to be deteriorating again by 2025. These fluctuations underscore shifts in the company's earnings capacity, with periods of robust profitability punctuated by potential vulnerabilities indicated by lower ratios in the most recent period.