ZoomInfo Technologies Inc (ZI)
Profitability ratios
Return on sales
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | |
|---|---|---|---|---|---|
| Gross profit margin | 84.42% | 89.16% | 86.60% | 87.77% | 94.06% |
| Operating profit margin | 8.03% | 21.81% | 16.74% | 16.29% | 9.46% |
| Pretax margin | 2.58% | 32.67% | 18.53% | 17.67% | 0.18% |
| Net profit margin | 2.40% | 9.02% | 6.02% | 16.79% | -1.02% |
ZoomInfo Technologies Inc has shown a consistent and relatively high gross profit margin over the years, with figures ranging from 84.42% to 94.06%. This indicates the company's ability to efficiently manage its production costs and generate profits from its core business activities.
However, the operating profit margin has been more volatile, fluctuating between 8.03% and 21.81%. Despite reaching a peak in 2023, the margin dropped significantly in 2024, which could be a cause for concern as it reflects the company's operational efficiency and effectiveness in controlling its operating expenses.
The pretax margin has seen a significant increase from 0.18% in 2020 to 32.67% in 2023, before decreasing to 2.58% in 2024. This margin indicates the company's ability to generate profits before accounting for tax expenses, with a substantial improvement in profitability in 2023.
Similarly, the net profit margin has shown fluctuations, ranging from -1.02% to 16.79%. While 2021 and 2023 saw significant improvements in net profitability, 2024 witnessed a decline to 2.40%. This margin reflects the company's overall profitability after deducting all expenses, including taxes, interest, and other operational costs.
Overall, while ZoomInfo Technologies Inc has demonstrated strong gross profit margins, there are fluctuations in operating, pretax, and net profit margins that warrant further analysis to understand the drivers behind these changes and their potential impact on the company's financial performance in the future.
Return on investment
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | |
|---|---|---|---|---|---|
| Operating return on assets (Operating ROA) | 1.51% | 3.78% | 2.46% | 1.65% | 1.59% |
| Return on assets (ROA) | 0.45% | 1.56% | 0.89% | 1.70% | -0.17% |
| Return on total capital | 3.34% | 12.97% | 6.91% | 5.16% | 4.16% |
| Return on equity (ROE) | 1.72% | 5.06% | 2.78% | 5.85% | -0.43% |
Based on the provided data, let's analyze the profitability ratios of ZoomInfo Technologies Inc:
1. Operating return on assets (Operating ROA):
- The Operating ROA shows a gradual increase from 1.59% in December 2020 to 3.78% in December 2023, indicating an improvement in the company's ability to generate operating income from its assets. However, there is a slight decline in December 2024 to 1.51%.
2. Return on assets (ROA):
- The ROA was negative at -0.17% in December 2020 but turned positive and reached its peak at 1.70% in December 2021. The ratio fluctuated in the following years, ending at 0.45% in December 2024. This ratio reflects the company's efficiency in generating profits from its total assets.
3. Return on total capital:
- The Return on total capital increased significantly from 4.16% in December 2020 to 12.97% in December 2023, indicating efficient management of both debt and equity capital. However, there was a decrease to 3.34% by December 2024.
4. Return on equity (ROE):
- The ROE started at -0.43% in December 2020 and experienced fluctuations over the years, reaching a peak of 5.85% in December 2021. The ratio declined to 1.72% by December 2024, reflecting how well the company is utilizing its shareholders' equity to generate profits.
Overall, ZoomInfo Technologies Inc showed improvement in profitability ratios over the years, with varying trends in different ratios. Operating ROA and ROA indicated steady performance, while Return on total capital saw significant growth, and ROE reflected fluctuations in the company's ability to generate profits relative to shareholders' equity.