ZoomInfo Technologies Inc (ZI)

Receivables 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
Revenue (ttm)	US$ in thousands	1,190,000	1,176,200	1,150,300	1,109,100	1,050,400	970,200	876,100	784,600	695,600	616,400	548,200	457,400
Receivables	US$ in thousands	275,200	226,600	215,600	223,400	228,500	171,000	167,900	172,300	191,900	119,200	112,100	116,200	123,600	94,500	93,500
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

December 31, 2023 calculation

Receivables turnover = Revenue (ttm) ÷ Receivables
= $1,190,000K ÷ $275,200K
= 4.32

ZoomInfo Technologies Inc.'s receivables turnover has exhibited some variability over the past eight quarters. The receivables turnover ratio, which measures how efficiently the company is able to collect payments from its customers, ranged from a low of 4.50 in Q4 2023 to a high of 5.96 in Q3 2022.

On average, the company collected its accounts receivable approximately 5 times during the fiscal year of 2022. However, in the most recent quarter, Q4 2023, the receivables turnover decreased to 4.50, indicating that the company took longer to collect payments from its customers compared to the previous quarters.

It is important for ZoomInfo to monitor its receivables turnover ratio closely, as a declining trend could signal potential issues with credit policies, customer payment delays, or ineffective collection efforts. A consistently high receivables turnover ratio is generally favorable, as it demonstrates efficient cash conversion and effective credit management.