ZoomInfo Technologies Inc (ZI)
Profitability ratios
Return on sales
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | |
|---|---|---|---|---|
| Gross profit margin | 89.19% | 86.60% | 87.77% | 94.06% |
| Operating profit margin | 21.81% | 16.74% | 16.29% | 9.46% |
| Pretax margin | 32.67% | 18.53% | 17.67% | 0.18% |
| Net profit margin | 9.02% | 6.02% | 16.79% | -1.02% |
Over the past five years, ZoomInfo Technologies Inc. has shown a strong trend of improving profitability ratios.
The gross profit margin has consistently increased from 83.95% in 2019 to 88.79% in 2023, indicating efficient management of production costs and pricing strategies.
The operating profit margin has also exhibited a positive trend, with a noticeable improvement from 15.06% in 2019 to 21.77% in 2023. This suggests that the company has been successful in controlling its operating expenses and improving operational efficiency.
The pretax margin has shown significant volatility over the period, with a sharp increase from -16.23% in 2019 to 31.37% in 2023. This indicates a recovery from losses to strong profitability levels, possibly due to strategic changes or operational improvements.
The net profit margin has also demonstrated improvement, moving from negative figures in 2019 and 2020 to positive margins in subsequent years. The net profit margin has increased from -5.71% in 2019 to 8.66% in 2023, reflecting the company's ability to generate profits after accounting for all expenses and taxes.
Overall, ZoomInfo Technologies Inc. has made significant strides in enhancing its profitability ratios, showcasing improved operational efficiency and stronger financial performance over the past five years.
Return on investment
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | |
|---|---|---|---|---|
| Operating return on assets (Operating ROA) | 3.78% | 2.46% | 1.65% | 1.59% |
| Return on assets (ROA) | 1.56% | 0.89% | 1.70% | -0.17% |
| Return on total capital | 12.97% | 6.91% | 5.16% | 4.16% |
| Return on equity (ROE) | 5.06% | 2.78% | 5.85% | -0.43% |
ZoomInfo Technologies Inc. has demonstrated improvement in its profitability ratios over the years, as reflected in its operating return on assets (Operating ROA) rising from 2.52% in 2019 to 3.93% in 2023. It indicates that the company is generating more operating income relative to its total assets, reflecting operational efficiency.
Similarly, the overall return on assets (ROA) has shown a positive trend, increasing from -1.22% in 2019 to 1.56% in 2023. This suggests that ZoomInfo has become more effective in utilizing its assets to generate profits, turning around from previously negative returns.
The return on total capital and return on equity (ROE) have also improved steadily. The return on total capital has climbed from 4.24% in 2019 to 8.05% in 2023, indicating that ZoomInfo is generating higher returns on the total capital employed in the business. The ROE has also showcased a positive trajectory, reaching 5.06% in 2023, suggesting that the company is generating more profit per dollar of shareholders' equity.
Overall, these trends in profitability ratios reflect positively on ZoomInfo Technologies Inc.'s ability to enhance its operational efficiency and profitability over the years.