ZoomInfo Technologies Inc (ZI)
Cash ratio
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Cash and cash equivalents | US$ in thousands | 139,900 | 447,100 | 418,000 | 308,300 | 269,800 |
| Short-term investments | US$ in thousands | 0 | 82,200 | 127,700 | 18,400 | 30,600 |
| Total current liabilities | US$ in thousands | 652,100 | 638,400 | 572,700 | 507,600 | 320,800 |
| Cash ratio | 0.21 | 0.83 | 0.95 | 0.64 | 0.94 |
December 31, 2024 calculation
Cash ratio = (Cash and cash equivalents + Short-term investments) ÷ Total current liabilities
= ($139,900K
+ $0K)
÷ $652,100K
= 0.21
The cash ratio of ZoomInfo Technologies Inc has shown fluctuations over the years. As of December 31, 2020, the cash ratio was 0.94, indicating that the company had $0.94 in cash and cash equivalents for every $1 of current liabilities. This ratio decreased to 0.64 by December 31, 2021, suggesting a lower level of liquidity compared to the previous year.
However, the cash ratio improved to 0.95 by December 31, 2022, which could be seen as a positive sign of increased liquidity. Nevertheless, by December 31, 2023, the cash ratio declined to 0.83, showing a slight reduction in the company's ability to cover its short-term obligations with cash on hand.
The most significant decrease in the cash ratio occurred by December 31, 2024, plummeting to 0.21. This sharp decline may raise concerns about ZoomInfo's liquidity position and its ability to meet immediate financial obligations solely from its cash resources.
Overall, while the company's cash ratio has fluctuated over the years, investors and stakeholders should carefully monitor ZoomInfo's liquidity position to assess its ability to manage short-term obligations effectively.
Peer comparison
Dec 31, 2024