ZoomInfo Technologies Inc (ZI)
Activity ratios
Short-term
Turnover ratios
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | |
|---|---|---|---|---|---|
| Inventory turnover | — | 39.42 | — | — | 25.32 |
| Receivables turnover | 4.81 | 4.32 | 4.60 | 3.62 | 3.17 |
| Payables turnover | 61.72 | 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 varying levels of efficiency in managing its working capital and operating cycle over the years:
1. Inventory Turnover: The company's inventory turnover has shown a significant increase from 25.32 in 2020 to 39.42 in 2023. This indicates that ZoomInfo is selling its inventory more quickly and efficiently, which is a positive sign for the company's operations.
2. Receivables Turnover: ZoomInfo's receivables turnover has also improved steadily from 3.17 in 2020 to 4.81 in 2024. This demonstrates that the company is collecting its accounts receivable faster, which can enhance cash flow and reduce the risk of bad debts.
3. Payables Turnover: The payables turnover ratio declined from 46.81 in 2020 to 21.87 in 2022, indicating that ZoomInfo took longer to pay its suppliers. However, it rebounded to 61.72 in 2024, suggesting that the company's payment cycle improved significantly, which could have positive implications for liquidity and supplier relationships.
4. Working Capital Turnover: The working capital turnover ratio fluctuated over the years, with a notable spike in 2021 to 18.26, suggesting the company was generating more revenue per unit of working capital. This ratio decreased in subsequent years, indicating potential changes in the efficiency of capital utilization.
In conclusion, ZoomInfo Technologies Inc's activity ratios reflect improvements in inventory management, accounts receivable collection, and payment practices. However, fluctuations in working capital turnover highlight the need for continuous monitoring and adjustment of operational processes to enhance overall efficiency.
Average number of days
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Days of inventory on hand (DOH) | days | — | 9.26 | — | — | 14.42 |
| Days of sales outstanding (DSO) | days | 75.94 | 84.41 | 79.40 | 100.70 | 115.09 |
| Number of days of payables | days | 5.91 | 14.75 | 16.69 | 10.33 | 7.80 |
ZoomInfo Technologies Inc's Days of Inventory on Hand (DOH) decreased from 14.42 days in 2020 to 9.26 days in 2023. This indicates that the company is managing its inventory more efficiently, possibly reducing holding costs and improving cash flow.
The Days of Sales Outstanding (DSO) ratio decreased from 115.09 days in 2020 to 75.94 days in 2024. This suggests that ZoomInfo is collecting its accounts receivable faster, leading to improved liquidity and potentially indicating effective credit management practices.
The Number of Days of Payables increased from 7.80 days in 2020 to 16.69 days in 2022 before declining to 5.91 days in 2024. This trend may indicate changes in the company's payment terms with suppliers, affecting its working capital management.
Overall, based on these activity ratios, ZoomInfo Technologies Inc has shown improvements in managing its inventory, collecting receivables efficiently, and optimizing its payment terms with suppliers over the analyzed period. It appears that the company has been successful in enhancing its operational efficiency and working capital management.
Long-term
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | |
|---|---|---|---|---|---|
| Fixed asset turnover | 10.78 | 18.28 | 20.16 | 16.68 | 12.65 |
| Total asset turnover | 0.19 | 0.17 | 0.15 | 0.10 | 0.17 |
ZoomInfo Technologies Inc's Fixed Asset Turnover has been on an upward trend over the specified years, indicating that the company is utilizing its fixed assets more efficiently to generate sales. The Fixed Asset Turnover ratio increased from 12.65 in 2020 to 18.28 in 2023, although it slightly decreased to 10.78 in 2024. This suggests that the company may have experienced fluctuations in its fixed asset utilization efficiency during these years.
In contrast, the Total Asset Turnover ratio fluctuated more noticeably during the same period. The ratio was relatively low in 2021 at 0.10, increased to 0.15 in 2022, and further improved to 0.19 in 2024. This indicates that ZoomInfo Technologies Inc generated sales more efficiently relative to its total assets in recent years.
Overall, while the Fixed Asset Turnover ratio indicates improvements in the efficiency of using fixed assets, the Total Asset Turnover ratio portrays a more varied picture in terms of overall asset utilization efficiency. Investors may further analyze the company's asset management strategies and operational performance to evaluate the significance of these trends in the long-term growth and profitability of ZoomInfo Technologies Inc.