ZoomInfo Technologies Inc (ZI)

Payables turnover

Dec 31, 2024 Dec 31, 2023 Dec 31, 2022 Dec 31, 2021 Dec 31, 2020
Cost of revenue US$ in thousands 1,024,600 851,400 778,700 561,800 402,600
Payables US$ in thousands 16,600 34,400 35,600 15,900 8,600
Payables turnover 61.72 24.75 21.87 35.33 46.81

December 31, 2024 calculation

Payables turnover = Cost of revenue ÷ Payables
= $1,024,600K ÷ $16,600K
= 61.72

Based on the data provided, the payables turnover for ZoomInfo Technologies Inc has fluctuated over the years. The payables turnover ratio indicates how efficiently a company is managing its accounts payable by paying off its suppliers.

In 2020, the payables turnover ratio was relatively high at 46.81, suggesting that ZoomInfo Technologies Inc was paying off its payables almost 47 times during that year, which indicates strong efficiency in managing its accounts payable.

However, there was a decrease in the payables turnover ratio in 2021 to 35.33, which could suggest a slowing down in the pace of paying off suppliers compared to the previous year.

The ratio further declined in 2022 to 21.87, indicating a significant drop in the efficiency of managing accounts payable. It is important to investigate the reasons behind this decline, such as changes in payment terms or supplier relationships.

In 2023, the payables turnover ratio slightly increased to 24.75, but it remained lower than the levels seen in 2020 and 2021, indicating that ZoomInfo Technologies Inc was still experiencing challenges in managing its payables effectively.

By 2024, the payables turnover ratio significantly improved to 61.72, reaching a level even higher than in 2020, which could suggest that the company had implemented measures to enhance its accounts payable management efficiency.

In conclusion, the payables turnover ratio for ZoomInfo Technologies Inc has varied over the years, with fluctuations indicating changes in the company's efficiency in managing its accounts payable. It is essential for the company to monitor this ratio closely and take corrective actions as needed to ensure optimal working capital management.