ZoomInfo Technologies Inc (ZI)
Liquidity ratios
| 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 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Current ratio | 0.69 | 0.63 | 0.97 | 1.11 | 1.35 | 1.49 | 1.55 | 1.47 | 1.45 | 1.28 | 1.08 | 1.20 | 1.08 | 1.00 | 1.37 | 1.39 |
| Quick ratio | 0.60 | 0.51 | 0.87 | 1.01 | 1.26 | 1.39 | 1.44 | 1.36 | 1.35 | 1.18 | 1.00 | 1.12 | 1.02 | 0.86 | 1.33 | 1.35 |
| Cash ratio | 0.21 | 0.24 | 0.59 | 0.66 | 0.83 | 0.99 | 1.09 | 1.00 | 0.95 | 0.85 | 0.68 | 0.79 | 0.64 | 0.57 | 1.04 | 1.02 |
The liquidity ratios of ZoomInfo Technologies Inc provide insights into the company's ability to meet its short-term financial obligations.
The current ratio, which measures the company's ability to pay its short-term liabilities with its short-term assets, fluctuated over the periods analyzed. It started at a healthy level of 1.39 in March 2021, gradually declined to 0.63 by September 2024, indicating potential challenges in meeting immediate obligations. However, the ratio improved to 0.69 by December 2024.
The quick ratio, a more stringent liquidity measure that excludes inventory from current assets, showed similar trends. It was above 1 in the initial periods, reflecting a strong ability to cover short-term liabilities with more liquid assets. However, it declined to 0.60 by December 2024, indicating a reduction in immediate liquidity.
The cash ratio, which focuses solely on the most liquid assets like cash and equivalents, followed a similar pattern. It started above 1, indicating ample cash reserves, but decreased over time. By the end of December 2024, the cash ratio stood at 0.21, suggesting a lower level of cash relative to short-term obligations.
Overall, while ZoomInfo Technologies Inc generally maintained adequate liquidity levels in the earlier periods, there was a decline in liquidity ratios towards the end of the analyzed period. This may signal a need for the company to closely monitor its liquidity position and manage its short-term resources more effectively to ensure continued financial stability.
Additional liquidity measure
| 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| 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 |
The cash conversion cycle for ZoomInfo Technologies Inc has been fluctuating over the years. As of December 31, 2024, the company's cash conversion cycle stands at 69.78 days, indicating the number of days it takes for the company to convert its investments in inventory and other resources into cash flows from sales.
ZoomInfo's cash conversion cycle reached its highest point at 89.25 days on December 31, 2021, before improving to 42.67 days on September 30, 2024, reflecting a trend towards more efficient working capital management. A lower cash conversion cycle is generally favorable as it suggests that the company is able to efficiently generate cash flows from its operational activities.
Overall, the trend in ZoomInfo's cash conversion cycle indicates fluctuations in the efficiency of its inventory management, accounts receivable collection, and accounts payable payment processes. It is essential for the company to continue monitoring and optimizing its cash conversion cycle to maintain healthy liquidity and financial performance.