ZoomInfo Technologies Inc (ZI)

Quick ratio

		Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020
Cash	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
Receivables	US$ in thousands	275,200	228,500	191,900	123,600
Total current liabilities	US$ in thousands	638,400	572,700	507,600	320,800
Quick ratio		1.26	1.35	1.02	1.32

December 31, 2023 calculation

Quick ratio = (Cash + Short-term investments + Receivables) ÷ Total current liabilities
= ($447,100K + $82,200K + $275,200K) ÷ $638,400K
= 1.26

The quick ratio of ZoomInfo Technologies Inc. has shown variability over the past five years, ranging from 0.61 to 1.45. In 2019, the ratio was at its lowest point of 0.61, indicating a lower level of liquidity to cover short-term obligations. However, from 2020 onwards, there was a significant improvement in the quick ratio, reaching a peak of 1.45 in 2022.

The quick ratio measures the company's ability to meet its short-term liabilities with its most liquid assets. A ratio above 1 suggests that the company has an adequate level of liquid assets to cover its current liabilities, with a higher ratio indicating stronger liquidity position.

ZoomInfo's quick ratios for 2020, 2022, and 2023 are above 1, indicating a positive trend in the company's liquidity management. However, in 2021, the ratio dropped to 1.08, which may suggest a temporary liquidity challenge or a change in the company's working capital management.

Overall, the improving trend in ZoomInfo Technologies Inc.'s quick ratio over the years reflects a generally positive liquidity position, with the company being better positioned to meet its short-term obligations using its liquid assets.