ZoomInfo Technologies Inc (ZI)

Working capital turnover

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
Revenue (ttm) US$ in thousands 1,203,500 1,197,300 1,195,600 1,201,400 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
Total current assets US$ in thousands 451,000 390,700 659,600 740,200 864,300 855,100 944,700 905,100 832,000 663,200 578,800 617,200 545,700 408,700 530,000 485,500
Total current liabilities US$ in thousands 652,100 624,100 680,700 664,100 638,400 573,100 607,900 617,000 572,700 518,000 535,800 515,900 507,600 407,900 385,500 348,200
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

December 31, 2024 calculation

Working capital turnover = Revenue (ttm) ÷ (Total current assets – Total current liabilities)
= $1,203,500K ÷ ($451,000K – $652,100K)
= —

Working capital turnover is a financial ratio that measures how efficiently a company utilizes its working capital to generate revenue. It is calculated by dividing net sales by average working capital.

Analyzing the working capital turnover of ZoomInfo Technologies Inc over the provided periods shows fluctuations in the efficiency of its working capital management. The values range from a low of 3.33 in March 2021 to a high of 770.50 in September 2021, which is an outlier and may be due to specific circumstances or anomalies.

Subsequently, the ratio shows a decreasing trend, indicating a decline in the efficiency of working capital turnover. The ratio drops to more stable levels around 3.5 to 7.75 in the following quarters. This suggests that the company may be struggling to efficiently utilize its working capital to generate sales during these periods.

The working capital turnover ratio peaks again at 20.37 in June 2022, indicating a significant improvement in efficiency. However, this is followed by fluctuations and a downward trend in the later quarters, with values ranging from 3.42 to 5.27.

The company's working capital turnover ratio of "—", noted for the quarters ending June 30, 2024, September 30, 2024, and December 31, 2024, indicates missing or unavailable data for those periods.

In summary, the analysis of ZoomInfo Technologies Inc's working capital turnover reveals fluctuations and some inconsistencies in the efficiency of its working capital management, with periods of both high and low turnover ratios. Further examination and additional context would be necessary to understand the factors driving these changes and assess the company's overall financial health.