ZoomInfo Technologies Inc (ZI)
Return on total capital
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Earnings before interest and tax (EBIT) | US$ in thousands | 97,400 | 434,000 | 242,200 | 166,800 | 70,000 |
| Long-term debt | US$ in thousands | 1,221,800 | 1,226,400 | 1,235,700 | 1,232,900 | 744,900 |
| Total stockholders’ equity | US$ in thousands | 1,693,500 | 2,119,300 | 2,271,800 | 1,997,900 | 939,600 |
| Return on total capital | 3.34% | 12.97% | 6.91% | 5.16% | 4.16% |
December 31, 2024 calculation
Return on total capital = EBIT ÷ (Long-term debt + Total stockholders’ equity)
= $97,400K ÷ ($1,221,800K + $1,693,500K)
= 3.34%
ZoomInfo Technologies Inc's return on total capital has shown a fluctuating trend over the past five years. Starting at 4.16% on December 31, 2020, the return on total capital increased to 5.16% by the end of 2021. The trend continued upwards to 6.91% by December 31, 2022, indicating an improving efficiency in generating returns from total capital employed.
However, a significant jump was seen by the end of 2023, with the return on total capital reaching 12.97%. This substantial increase suggests a noteworthy improvement in the company's ability to generate profits relative to the total capital invested.
Despite this strong performance in 2023, there was a notable decline in the return on total capital to 3.34% by the end of 2024. This decrease may indicate challenges or changes in the company's operating efficiency or profitability during that period.
Overall, the trend in ZoomInfo Technologies Inc's return on total capital shows both positive and negative movements over the five-year period, highlighting the importance of monitoring and analyzing this ratio to evaluate the company's performance and efficiency in utilizing its total capital resources.
Peer comparison
Dec 31, 2024