ZoomInfo Technologies Inc (ZI)

Return on total capital

		Dec 31, 2024	Sep 30, 2024	Jun 30, 2024	Mar 31, 2024	Dec 31, 2023	Sep 30, 2023	Jun 30, 2023	Mar 31, 2023	Dec 31, 2022	Sep 30, 2022	Jun 30, 2022	Mar 31, 2022	Dec 31, 2021	Sep 30, 2021	Jun 30, 2021	Mar 31, 2021
Earnings before interest and tax (EBIT) (ttm)	US$ in thousands	94,000	281,200	308,800	395,500	434,000	327,400	317,900	289,300	242,200	193,700	150,900	138,400	166,800	134,200	131,400	105,300
Long-term debt	US$ in thousands	1,221,800	1,222,900	1,223,800	1,225,400	1,226,400	1,227,000	1,228,000	1,229,000	1,235,700	1,235,000	1,234,300	1,233,600	1,232,900	1,232,200	739,200	738,700
Total stockholders’ equity	US$ in thousands	1,693,500	1,668,400	1,862,900	2,005,900	2,119,300	2,250,400	2,347,000	2,319,300	2,271,800	2,196,300	2,123,900	2,059,400	1,997,900	1,834,700	991,700	946,900
Return on total capital		3.22%	9.73%	10.00%	12.24%	12.97%	9.42%	8.89%	8.15%	6.91%	5.65%	4.49%	4.20%	5.16%	4.38%	7.59%	6.25%

December 31, 2024 calculation

Return on total capital = EBIT (ttm) ÷ (Long-term debt + Total stockholders’ equity)
= $94,000K ÷ ($1,221,800K + $1,693,500K)
= 3.22%

ZoomInfo Technologies Inc's return on total capital has shown fluctuations over the past few years. The ratio increased from 6.25% as of March 31, 2021, to a peak of 12.97% by December 31, 2023. This significant improvement indicates the company's ability to generate higher returns relative to the total capital employed in its operations during this period.

However, the return on total capital experienced a decline in the following quarters, dropping to 3.22% by December 31, 2024. This downward trend suggests a potential decrease in the efficiency of the company's capital utilization or profitability during that specific period.

Overall, it is essential for ZoomInfo Technologies Inc to consistently monitor and manage its return on total capital to ensure optimal utilization of capital resources and sustained profitability in the long term.