ZoomInfo Technologies Inc (ZI)
Activity ratios
Short-term
Turnover ratios
| 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 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Inventory turnover | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — |
| Receivables turnover | 4.77 | 7.08 | 6.12 | 5.27 | 4.32 | 5.19 | 5.34 | 4.96 | 4.60 | 5.67 | 5.22 | 4.55 | 3.62 | 5.17 | 4.89 | 3.94 |
| 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 |
| Working capital turnover | — | — | — | 15.79 | 5.27 | 4.17 | 3.42 | 3.85 | 4.05 | 6.68 | 20.37 | 7.75 | 18.26 | 770.50 | 3.79 | 3.33 |
Based on the provided data for ZoomInfo Technologies Inc, we can analyze the activity ratios as follows:
1. Inventory Turnover: The inventory turnover ratio is not available for any of the periods provided. This indicates that the company may not hold significant amounts of inventory relative to its sales or that the inventory turnover data is not disclosed.
2. Receivables Turnover: The receivables turnover ratio measures how efficiently a company is collecting its accounts receivables. The trend for ZoomInfo Technologies Inc shows varying levels of receivables turnover over the periods provided, with values ranging from 3.62 to 7.08. An increasing trend in receivables turnover generally indicates improved efficiency in collecting receivables, while a decreasing trend may signal potential issues with accounts receivable management.
3. Payables Turnover: The payables turnover ratio reflects how quickly a company pays its suppliers. ZoomInfo Technologies Inc exhibits a fluctuating trend in payables turnover, with values ranging from 17.65 to 53.72. A higher payables turnover ratio suggests that the company is paying its suppliers more quickly, which can have implications for its liquidity and supplier relationships.
4. Working Capital Turnover: The working capital turnover ratio assesses how efficiently a company is using its working capital to generate sales revenue. The data for ZoomInfo Technologies Inc shows a varied trend in working capital turnover over the periods provided, ranging from 3.33 to 20.37. A higher working capital turnover ratio typically indicates that the company is effectively utilizing its working capital to support its operations and generate revenue.
Overall, analyzing these activity ratios can provide insights into the efficiency of ZoomInfo Technologies Inc's operations, management of its assets and liabilities, and its overall financial performance.
Average number of days
| 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Days of inventory on hand (DOH) | days | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — |
| Days of sales outstanding (DSO) | days | 76.58 | 51.55 | 59.65 | 69.24 | 84.41 | 70.32 | 68.41 | 73.52 | 79.40 | 64.33 | 69.95 | 80.15 | 100.70 | 70.58 | 74.64 | 92.73 |
| Number of days of payables | days | 6.79 | 8.88 | 8.56 | 8.19 | 16.25 | 9.02 | 10.41 | 11.95 | 17.43 | 12.21 | 11.71 | 11.52 | 11.44 | 20.67 | 19.28 | 12.51 |
ZoomInfo Technologies Inc's activity ratios show the efficiency of the company in managing its inventory, accounts receivable, and accounts payable.
- Days of Inventory on Hand (DOH) remained constant at an undisclosed value throughout the observed periods. This suggests that ZoomInfo may have a consistent inventory turnover rate or that the company does not disclose this specific metric.
- Days of Sales Outstanding (DSO) decreased over the years, indicating that the company is collecting its accounts receivable faster. This improvement suggests a more efficient credit and collection process, resulting in better cash flow management.
- Number of Days of Payables decreased significantly from 12.51 days on March 31, 2021, to 6.79 days on December 31, 2024. This trend indicates that ZoomInfo is taking more time to pay its suppliers, likely benefiting from extended payment terms or stronger negotiation power.
Overall, the decreasing trend in DSO and Number of Days of Payables reflects improved efficiency in managing accounts receivable and payables, which could positively impact ZoomInfo's working capital and cash flow position.
Long-term
| 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 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Fixed asset turnover | 10.69 | 12.03 | 14.22 | 16.10 | 18.28 | 20.14 | 20.22 | 20.77 | 20.16 | 19.33 | 18.33 | 17.47 | 16.68 | 15.93 | 16.46 | 15.00 |
| Total asset turnover | 0.19 | 0.19 | 0.18 | 0.18 | 0.17 | 0.17 | 0.16 | 0.15 | 0.15 | 0.14 | 0.13 | 0.11 | 0.10 | 0.09 | 0.19 | 0.18 |
The Fixed Asset Turnover ratio measures how efficiently ZoomInfo Technologies Inc generates sales revenue from its investment in fixed assets. From March 31, 2021, to December 31, 2024, the Fixed Asset Turnover ratio increased steadily from 15.00 to 10.69, showing an initial upward trend followed by a sharp decline. This indicates that ZoomInfo was initially very efficient in generating sales from its fixed assets but then experienced a decrease in efficiency over time.
On the other hand, the Total Asset Turnover ratio reflects how effectively the company utilizes all its assets to generate sales. The Total Asset Turnover ratio for ZoomInfo Technologies Inc increased from 0.18 on March 31, 2021, to 0.19 on December 31, 2024. This suggests that the company gradually improved its overall asset utilization efficiency during this period by generating more sales for each dollar of assets invested.
In conclusion, while the Fixed Asset Turnover ratio declined over the period, indicating decreased efficiency in utilizing fixed assets to generate sales, the Total Asset Turnover ratio showed a slight improvement, reflecting enhanced effectiveness in generating sales from all assets.