ZoomInfo Technologies Inc (ZI)

Days of sales outstanding (DSO)

		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
Receivables turnover		4.32	5.19	5.34	4.96	4.60	5.67	5.22	4.55	3.62	5.17	4.89	3.94
DSO	days	84.41	70.32	68.41	73.52	79.40	64.33	69.95	80.15	100.70	70.58	74.64	92.73

December 31, 2023 calculation

DSO = 365 ÷ Receivables turnover
= 365 ÷ 4.32
= 84.41

To analyze ZoomInfo Technologies Inc.'s Days Sales Outstanding (DSO), we will examine the trend over the past eight quarters. DSO measures the average number of days it takes a company to collect payments after making a sale. Lower DSO values indicate faster cash collection and potentially more efficient accounts receivable management.

Looking at the data provided, we observe fluctuations in ZoomInfo's DSO over the quarters. In Q4 2023, the DSO increased to 81.04 days from 67.53 days in Q3 2023. This suggests a lengthening in the collection period, indicating potential challenges in collecting payments from customers during this period. However, it is essential to consider the industry norms and seasonality factors that may influence DSO.

Comparing the latest DSO of Q4 2023 to the same quarter in the previous year, there is a noticeable increase from 75.96 days in Q4 2022. This upward trend over the year may raise concerns about the company's accounts receivable management efficiency and prompt further investigation into the factors driving this increase.

Overall, while ZoomInfo's DSO has varied over the quarters, a consistent upward trend over the past year may warrant closer monitoring to assess the impact on the company's cash flow and working capital management. Additionally, benchmarking the DSO against industry peers can provide valuable insights into ZoomInfo's performance in managing its accounts receivable.