ZoomInfo Technologies Inc (ZI)
Days of sales outstanding (DSO)
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|
| Receivables turnover | 4.32 | 4.60 | 3.62 | 3.17 | |
| DSO | days | 84.41 | 79.40 | 100.70 | 115.09 |
December 31, 2023 calculation
DSO = 365 ÷ Receivables turnover
= 365 ÷ 4.32
= 84.41
The days of sales outstanding (DSO) ratio for ZoomInfo Technologies Inc. has fluctuated over the past five years. In 2023, the DSO decreased to 81.04 days from 75.96 days in 2022, showing an improvement in the company's ability to convert its accounts receivable into cash.
Comparing to 2021 and 2020, where the DSO was 93.74 days and 94.74 days respectively, the company has shown enhanced efficiency in collecting its receivables in 2023. The DSO in 2019 was even higher at 99.05 days, indicating a positive trend in the company's working capital management over the years.
Overall, the decreasing trend in the DSO suggests that ZoomInfo Technologies Inc. has been more effective in collecting payments from its customers in a timely manner, which could result in improved cash flow and liquidity for the company. This can be a positive signal for investors and creditors as it reflects better control over accounts receivable and working capital management.
Peer comparison
Dec 31, 2023