ZoomInfo Technologies Inc (ZI)
Receivables turnover
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|
| Revenue | US$ in thousands | 1,190,000 | 1,050,400 | 695,600 | 392,000 |
| Receivables | US$ in thousands | 275,200 | 228,500 | 191,900 | 123,600 |
| Receivables turnover | 4.32 | 4.60 | 3.62 | 3.17 |
December 31, 2023 calculation
Receivables turnover = Revenue ÷ Receivables
= $1,190,000K ÷ $275,200K
= 4.32
The receivables turnover ratio measures how efficiently a company is collecting payments from its customers. A higher receivables turnover ratio indicates that the company is effectively managing its accounts receivable and collecting payments in a timely manner.
ZoomInfo Technologies Inc.'s receivables turnover has fluctuated over the prior five years, ranging from 3.69 in 2019 to 4.81 in 2022. In 2023, the receivables turnover ratio was recorded at 4.50.
The trend indicates that the company's ability to collect payments from customers improved in 2023 compared to 2022, but it is slightly lower than the peak achieved in 2022. Generally, a consistent and increasing trend in the receivables turnover ratio is desirable as it signifies effective management of accounts receivable, improving liquidity, and minimizing the risk of bad debts.
It is important for ZoomInfo Technologies Inc. to continue monitoring and managing its accounts receivable effectively to ensure timely collections and maintain a healthy cash flow position.
Peer comparison
Dec 31, 2023