ZoomInfo Technologies Inc (ZI)
Activity ratios
Short-term
Turnover ratios
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | |
|---|---|---|---|---|
| Inventory turnover | — | — | — | 25.32 |
| Receivables turnover | 4.32 | 4.60 | 3.62 | 3.17 |
| Payables turnover | 24.75 | 21.87 | 35.33 | 46.81 |
| Working capital turnover | 5.27 | 4.05 | 18.26 | 3.30 |
ZoomInfo Technologies Inc.'s activity ratios show mixed trends over the past five years.
1. Receivables Turnover:
- The receivables turnover has decreased from 4.81 in 2022 to 4.50 in 2023, indicating that the company took longer to collect its accounts receivable in 2023 compared to the previous year. However, the ratio remains relatively stable over the years, demonstrating consistency in the company's ability to efficiently collect its credit sales.
2. Payables Turnover:
- The payables turnover has shown fluctuations, with a decrease from 3.94 in 2022 to 4.04 in 2023. This suggests that ZoomInfo Technologies Inc. took slightly longer to pay its suppliers in 2023. Despite the fluctuations, the company's payables turnover indicates efficient management of its trade payables.
3. Working Capital Turnover:
- The working capital turnover ratio reveals significant variability, with a notable decrease from 19.61 in 2021 to 5.49 in 2023. This suggests that the company's efficiency in generating revenue from its working capital decreased in 2023. The fluctuation in this ratio indicates changes in the company's operational efficiency and management of working capital over the years.
Overall, while the receivables and payables turnover ratios reflect relatively stable performance, the working capital turnover ratio shows considerable fluctuations, indicating shifts in the company's operational efficiency and management of working capital. Future monitoring of these activity ratios will be essential to assess ZoomInfo Technologies Inc.'s operational performance and financial health accurately.
Average number of days
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|
| Days of inventory on hand (DOH) | days | — | — | — | 14.42 |
| Days of sales outstanding (DSO) | days | 84.41 | 79.40 | 100.70 | 115.09 |
| Number of days of payables | days | 14.75 | 16.69 | 10.33 | 7.80 |
Based on the activity ratios provided for ZoomInfo Technologies Inc., we can analyze the efficiency of the company in managing its inventory, receivables, and payables over the years.
1. Days of Inventory on Hand (DOH): Unfortunately, specific data on the days of inventory on hand is not available for analysis. This ratio typically measures how many days it takes for a company to sell its average inventory. In this case, without the data, we cannot evaluate the efficiency of ZoomInfo in managing its inventory levels.
2. Days of Sales Outstanding (DSO): The Days of Sales Outstanding ratio indicates the average number of days it takes for the company to collect payment after making a sale. Over the past five years, ZoomInfo's DSO has shown some variability, with a decrease from 99.05 days in 2019 to 81.04 days in 2023. A lower DSO generally indicates a more efficient accounts receivable management process.
3. Number of Days of Payables: The Number of Days of Payables ratio measures the average number of days a company takes to pay its suppliers. ZoomInfo's days of payables have fluctuated significantly over the years, ranging from 37.28 days in 2020 to 92.68 days in 2022. The increase in this ratio indicates a longer period taken by the company to pay its suppliers.
Overall, the analysis of ZoomInfo Technologies Inc.'s activity ratios suggests that the company has shown improvements in managing its accounts receivable (DSO) efficiency by reducing the number of days to collect payment. However, the fluctuating trend in the number of days of payables indicates a variable approach to managing payables. Further information on the days of inventory on hand would provide a more comprehensive view of the company's inventory management efficiency.
Long-term
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | |
|---|---|---|---|---|
| Fixed asset turnover | 18.28 | 20.16 | 16.68 | 12.65 |
| Total asset turnover | 0.17 | 0.15 | 0.10 | 0.17 |
The fixed asset turnover ratio measures how efficiently a company is utilizing its fixed assets to generate revenue. In the case of ZoomInfo Technologies Inc., the trend in the fixed asset turnover ratio has been increasing over the past five years, from 14.36 in 2019 to 19.04 in 2023. This indicates that the company has been able to generate more revenue for each dollar invested in fixed assets. The higher fixed asset turnover reflects improved efficiency in utilizing its property, plant, and equipment to drive sales.
On the other hand, the total asset turnover ratio measures the company's ability to generate revenue from its total assets. ZoomInfo's total asset turnover ratio has fluctuated over the years, with a peak of 0.21 in 2019, followed by a drop to 0.11 in 2021, and then an increase to 0.18 in 2023. This suggests that the company's efficiency in generating sales from its total assets has varied, possibly due to changes in business operations, asset management, or industry conditions.
Overall, based on the long-term activity ratios analysis, ZoomInfo Technologies Inc. has demonstrated an improvement in its utilization of fixed assets to generate revenue, while its ability to generate revenue from total assets has fluctuated. Further investigation into the underlying reasons for these fluctuations would provide deeper insights into the company's operational efficiency and asset utilization strategies.