ZoomInfo Technologies Inc (ZI)

Activity ratios

Short-term

Turnover ratios

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 4.32 5.19 5.34 4.96 4.60 5.67 5.22 4.55 3.62 5.17 4.89 3.94
Payables turnover 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 5.27 4.17 3.42 3.85 4.05 6.68 20.37 7.75 18.26 770.50 3.79 3.33

The activity ratios of ZoomInfo Technologies Inc. provide insights into how efficiently the company is managing its assets and liabilities.

1. Receivables Turnover: This ratio indicates how many times during a period the company collects its accounts receivable. A higher ratio suggests that ZoomInfo is effective in collecting payments from its customers. The trend shows improvement from Q4 2022 to Q3 2023, indicating better management of customer credit and collection processes.

2. Payables Turnover: This ratio measures how quickly ZoomInfo pays its suppliers. A higher ratio implies that the company is taking longer to pay its suppliers. The company's payables turnover ratio increased steadily from Q4 2022 to Q3 2023, indicating a longer payment period to suppliers, which could be beneficial for cash flow management.

3. Working Capital Turnover: This ratio shows how efficiently ZoomInfo is using its working capital to generate sales revenue. A higher ratio suggests that the company is effectively using its resources to drive sales. The trend shows fluctuation, reaching a peak in Q2 2022, which could indicate changes in the company's working capital management strategy.

Overall, based on the activity ratios analyzed, ZoomInfo Technologies Inc. has shown improvements in receivables turnover and payables turnover, which could positively impact its cash flow and working capital management efficiencies.


Average number of days

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 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 16.25 9.02 10.41 11.95 17.43 12.21 11.71 11.52 11.44 20.67 19.28 12.51

The activity ratios of ZoomInfo Technologies Inc. provide insights into the efficiency of the company's operations.

1. Days of Inventory on Hand (DOH): Unfortunately, the data for DOH is missing in all the periods provided. This ratio helps in assessing how quickly inventory is sold or used up by the company. A lower DOH indicates that ZoomInfo is efficiently managing its inventory and selling products promptly.

2. Days of Sales Outstanding (DSO): DSO has been fluctuating over the periods presented, ranging from 61.27 days to 81.04 days. This ratio measures how long it takes for the company to collect revenue after a sale is made. A lower DSO indicates that ZoomInfo is collecting payments from its customers more quickly, improving cash flow and reducing the risk of bad debts.

3. Number of Days of Payables: There is variability in the days of payables across the periods, from 52.62 days to 92.68 days. This ratio reflects the average number of days it takes for ZoomInfo to pay its suppliers. A higher number of days of payables suggests that the company is taking longer to settle its obligations, potentially preserving cash and improving liquidity.

Overall, ZoomInfo's management of these activity ratios indicates its ability to efficiently manage inventory, collect payments from customers, and handle its payable obligations over the periods provided.


Long-term

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 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 0.17 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 for ZoomInfo Technologies Inc. has shown a consistently improving trend over the past eight quarters, increasing from 18.61 in Q1 2022 to 21.67 in Q1 2023. This indicates that the company is generating more sales revenue relative to its fixed assets, suggesting improved efficiency in asset utilization.

On the other hand, the total asset turnover ratio has also been on an upward trend, albeit with a lower magnitude compared to the fixed asset turnover ratio. It has increased from 0.12 in Q1 2022 to 0.18 in Q4 2023. This indicates that ZoomInfo is generating more revenue from its total assets, including both fixed and current assets, which is a positive sign of operational efficiency and effective asset management.

Overall, both ratios demonstrate that ZoomInfo Technologies Inc. is effectively utilizing its assets to generate sales revenue, with the fixed asset turnover ratio showing a more pronounced improvement. This suggests that the company is making efficient use of its fixed assets, such as property, plant, and equipment, to drive revenue growth and overall operational performance.