ZoomInfo Technologies Inc (ZI)
Cash conversion cycle
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Days of inventory on hand (DOH) | days | — | 9.26 | — | — | 14.42 |
| Days of sales outstanding (DSO) | days | 75.94 | 84.41 | 79.40 | 100.70 | 115.09 |
| Number of days of payables | days | 5.91 | 14.75 | 16.69 | 10.33 | 7.80 |
| Cash conversion cycle | days | 70.03 | 78.92 | 62.71 | 90.36 | 121.70 |
December 31, 2024 calculation
Cash conversion cycle = DOH + DSO – Number of days of payables
= — + 75.94 – 5.91
= 70.03
The cash conversion cycle of ZoomInfo Technologies Inc has shown a downward trend from 121.70 days in December 2020 to 70.03 days in December 2024. This indicates a more efficient management of the company's working capital over the years.
In December 2021, the cash conversion cycle decreased significantly to 90.36 days, reflecting improved efficiency in converting inventory and receivables into cash. The company continued to enhance its working capital management, as evidenced by a further decrease to 62.71 days by December 2022.
However, there was a slight increase in the cash conversion cycle to 78.92 days by December 2023, possibly due to changes in operating activities or external factors impacting receivables or inventory turnover.
Overall, the decreasing trend in the cash conversion cycle suggests that ZoomInfo Technologies Inc has been able to streamline its operations, strengthen its cash flow position, and effectively manage its working capital over the years. This improvement may indicate increased efficiency and effectiveness in the company's financial management.
Peer comparison
Dec 31, 2024