ZoomInfo Technologies Inc (ZI)

Cash ratio

		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	Dec 31, 2020	Sep 30, 2020	Jun 30, 2020
Cash and cash equivalents	US$ in thousands	447,100	442,600	509,700	474,000	418,000	406,300	352,700	394,400	308,300	196,800	332,900	229,100	269,800	304,900	259,100
Short-term investments	US$ in thousands	82,200	125,300	150,600	141,800	127,700	32,400	12,900	12,400	18,400	36,500	66,800	124,600	30,600	—	—
Total current liabilities	US$ in thousands	638,400	573,100	607,900	617,000	572,700	518,000	535,800	515,900	507,600	407,900	385,500	348,200	320,800	247,500	237,700
Cash ratio		0.83	0.99	1.09	1.00	0.95	0.85	0.68	0.79	0.64	0.57	1.04	1.02	0.94	1.23	1.09

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 is a liquidity ratio that measures a company's ability to cover its short-term liabilities with its available cash and cash equivalents. A higher cash ratio indicates a stronger ability to meet short-term obligations without relying on external sources of financing.

Based on the data provided for ZoomInfo Technologies Inc., we observe fluctuations in the cash ratio over the past eight quarters. In Q4 2023, the cash ratio stood at 0.92, indicating that the company had $0.92 in cash and cash equivalents for every $1 of its current liabilities. Compared to the previous quarter, the cash ratio decreased from 1.10 in Q3 2023 to 0.92 in Q4 2023.

ZoomInfo's cash ratio has generally shown a fluctuating trend, with peaks in Q2 2023 (1.20) and Q4 2022 (1.05) and troughs in Q2 2022 (0.77) and Q1 2022 (0.86). This variability suggests that the company's liquidity position has been somewhat inconsistent over the analyzed period.

Overall, while the cash ratio serves as a useful indicator of a company's short-term liquidity position, it should be interpreted alongside other liquidity and financial metrics to gain a comprehensive understanding of ZoomInfo Technologies Inc.'s financial health and ability to meet its obligations in the short term.