ZoomInfo Technologies Inc (ZI)

Operating return on assets (Operating ROA)

Dec 31, 2024 Dec 31, 2023 Dec 31, 2022 Dec 31, 2021 Dec 31, 2020
Operating income US$ in thousands 97,400 259,500 175,800 113,300 37,100
Total assets US$ in thousands 6,467,600 6,868,300 7,136,400 6,852,900 2,327,400
Operating ROA 1.51% 3.78% 2.46% 1.65% 1.59%

December 31, 2024 calculation

Operating ROA = Operating income ÷ Total assets
= $97,400K ÷ $6,467,600K
= 1.51%

Operating return on assets (ROA) is a key financial metric that indicates how efficiently a company is generating earnings from its assets used in operations.

Based on the data provided for ZoomInfo Technologies Inc, the operating ROA has shown fluctuations over the period from December 31, 2020, to December 31, 2024. The trend indicates that the operating ROA has generally been on an upward trajectory, with the metric increasing from 1.59% in 2020 to 3.78% in 2023, before decreasing to 1.51% in 2024.

The increase in operating ROA from 2020 to 2023 suggests that ZoomInfo Technologies Inc has become more effective in generating operating income relative to its assets over this period. This can be a positive sign of improving operational efficiency and profitability. However, the decrease in operating ROA in 2024 indicates a potential decline in the company's ability to generate profits from its operational assets.

It is important for stakeholders to further investigate the factors driving these fluctuations in the operating ROA to assess the company's performance and operational effectiveness. Overall, a consistent and increasing operating ROA signifies that ZoomInfo Technologies Inc is utilizing its operational assets efficiently to generate returns for its investors.