ZoomInfo Technologies Inc (ZI)

Payables turnover

		Dec 31, 2024	Sep 30, 2024	Jun 30, 2024	Mar 31, 2024	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
Cost of revenue (ttm)	US$ in thousands	891,800	867,700	865,600	801,900	772,800	821,300	802,700	791,200	745,400	657,500	620,400	551,500	507,200	439,600	391,800	402,500
Payables	US$ in thousands	16,600	21,100	20,300	18,000	34,400	20,300	22,900	25,900	35,600	22,000	19,900	17,400	15,900	24,900	20,700	13,800
Payables turnover		53.72	41.12	42.64	44.55	22.47	40.46	35.05	30.55	20.94	29.89	31.18	31.70	31.90	17.65	18.93	29.17

December 31, 2024 calculation

Payables turnover = Cost of revenue (ttm) ÷ Payables
= $891,800K ÷ $16,600K
= 53.72

The payables turnover ratio indicates how efficiently a company is managing its accounts payable by comparing the amount of purchases made on credit to the average accounts payable balance during a period.

For ZoomInfo Technologies Inc, the payables turnover ratio has shown some fluctuations over the past few years. From March 31, 2021, to December 31, 2024, the payables turnover ratio ranged from a low of 17.65 to a high of 53.72.

In the earlier periods, the payables turnover ratio hovered around the 20s and low 30s, indicating that the company was, on average, able to pay off its accounts payable approximately 20 to 30 times a year. However, in the latter periods, there was a significant increase in the ratio, reaching above 40, suggesting that the company improved its efficiency in managing its accounts payable and was able to pay off its suppliers more frequently.

Overall, a higher payables turnover ratio signifies that ZoomInfo Technologies Inc is paying its suppliers more quickly, which may indicate good financial health and strong working capital management. However, a very high ratio could also suggest stringent payment terms with suppliers or potential cash flow issues that warrant further investigation.