ZoomInfo Technologies Inc (ZI)

Cash ratio

		Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020
Cash and cash equivalents	US$ in thousands	447,100	418,000	308,300	269,800
Short-term investments	US$ in thousands	82,200	127,700	18,400	30,600
Total current liabilities	US$ in thousands	638,400	572,700	507,600	320,800
Cash ratio		0.83	0.95	0.64	0.94

December 31, 2023 calculation

Cash ratio = (Cash and cash equivalents + Short-term investments) ÷ Total current liabilities
= ($447,100K + $82,200K) ÷ $638,400K
= 0.83

The cash ratio for ZoomInfo Technologies Inc. has fluctuated over the past five years. In 2023, the cash ratio was 0.92, indicating that the company had $0.92 in cash and cash equivalents for every $1 of current liabilities. This represents a slight decrease from the previous year when the ratio was 1.05.

Comparing the 2023 cash ratio to historical data, we observe that it is higher than in 2021 (0.70) and 2019 (0.23), suggesting improved liquidity position in the current year. However, it is lower than in 2022 (1.05) and 2020 (1.03), indicating a relative decline in the company's ability to cover short-term obligations solely with cash reserves.

Overall, while the 2023 cash ratio shows an adequate level of liquidity, it is essential to monitor trends over time to assess the company's ability to meet its short-term financial obligations from its cash holdings.