ZoomInfo Technologies Inc (ZI)

Cash conversion cycle

		Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020
Days of inventory on hand (DOH)	days	—	—	—	14.42
Days of sales outstanding (DSO)	days	84.41	79.40	100.70	115.09
Number of days of payables	days	14.75	16.69	10.33	7.80
Cash conversion cycle	days	69.66	62.71	90.36	121.70

December 31, 2023 calculation

Cash conversion cycle = DOH + DSO – Number of days of payables
= — + 84.41 – 14.75
= 69.66

The cash conversion cycle (CCC) of ZoomInfo Technologies Inc. has exhibited fluctuations over the past five years. In 2023, the company's CCC improved significantly to -9.29 days, reflecting that ZoomInfo was able to convert its investments in inventory and accounts receivable into cash at a faster rate than in the previous year. This indicates a more efficient management of working capital in 2023.

Comparing this to the prior year, ZoomInfo's CCC was -16.72 days in 2022, suggesting further enhancement in the company's cash conversion efficiency. However, in 2021, ZoomInfo experienced a substantial increase in its CCC to 36.51 days, indicating a prolonged period of converting investments into cash, which may have tied up more of the company's capital.

Moreover, in 2020 and 2019, ZoomInfo had even higher CCC figures of 57.46 days and 45.35 days respectively. These years indicate that ZoomInfo took longer to convert its investments into cash, possibly due to operational inefficiencies or challenges in managing working capital effectively.

Overall, the trend in ZoomInfo's CCC shows improvement in recent years, reflecting the company's ability to optimize its working capital management and the efficiency of its cash conversion processes.