ZoomInfo Technologies Inc (ZI)

Payables turnover

		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
Cost of revenue (ttm)	US$ in thousands	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	34,400	20,300	22,900	25,900	35,600	22,000	19,900	17,400	15,900	24,900	20,700	13,800	8,600	9,700	9,900
Payables turnover		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, 2023 calculation

Payables turnover = Cost of revenue (ttm) ÷ Payables
= $772,800K ÷ $34,400K
= 22.47

Based on the data provided, ZoomInfo Technologies Inc.'s payables turnover ratio has shown fluctuation over the past eight quarters. The payables turnover ratio indicates how efficiently the company manages its accounts payable by paying off its suppliers.

In Q4 2023, the payables turnover ratio was 4.04, indicating that the company turned over its payables approximately 4.04 times during the quarter. This was lower compared to the previous quarter, Q3 2023, where the ratio stood at 6.94. The significant decrease may suggest that ZoomInfo took longer to pay off its suppliers in Q4.

Comparing the Q4 2023 ratio to the same quarter in the previous year, Q4 2022, we see a slight improvement from 3.94 to 4.04. This improvement hints at a better efficiency in managing accounts payable year over year.

Overall, the trend in ZoomInfo's payables turnover ratio indicates some variability in the company's payment management practices. Further analysis and comparison with industry benchmarks would be necessary to fully assess the effectiveness of ZoomInfo's accounts payable management.