ZoomInfo Technologies Inc (ZI)

Cash conversion cycle

		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
Days of inventory on hand (DOH)	days	—	—	—	—	—	—	—	—	—	—	—	—	—	—	—	—
Days of sales outstanding (DSO)	days	76.58	51.55	59.65	69.24	84.41	70.32	68.41	73.52	79.40	64.33	69.95	80.15	100.70	70.58	74.64	92.73
Number of days of payables	days	6.79	8.88	8.56	8.19	16.25	9.02	10.41	11.95	17.43	12.21	11.71	11.52	11.44	20.67	19.28	12.51
Cash conversion cycle	days	69.78	42.67	51.09	61.05	68.16	61.30	58.00	61.57	61.97	52.12	58.24	68.64	89.25	49.91	55.35	80.21

December 31, 2024 calculation

Cash conversion cycle = DOH + DSO – Number of days of payables
= — + 76.58 – 6.79
= 69.78

ZoomInfo Technologies Inc's cash conversion cycle has shown fluctuations over the past few quarters.

The company's cash conversion cycle decreased from 80.21 days as of March 31, 2021, to 49.91 days as of September 30, 2021, indicating an improvement in efficiency in managing its working capital. However, the cycle increased significantly to 89.25 days by the end of December 31, 2021, suggesting potential challenges in managing cash flows and working capital during that period.

Subsequently, the cash conversion cycle improved to 58.24 days by June 30, 2022, and further decreased to 42.67 days by September 30, 2024. These declines indicate that ZoomInfo Technologies Inc was able to efficiently convert its investments in inventory and accounts receivable into cash during these quarters.

Overall, while there have been fluctuations in ZoomInfo Technologies Inc's cash conversion cycle, the company has shown periods of improvement in managing its working capital efficiently, which is a positive sign for its financial health and operational effectiveness.