ZoomInfo Technologies Inc (ZI)

ZoomInfo Technologies Inc's solvency ratios have shown improvement over the years. The Debt-to-assets ratio decreased from 0.32 in 2020 to 0.19 in 2024, indicating that the company's level of debt in relation to its total assets has decreased.

Similarly, the Debt-to-capital ratio declined from 0.44 in 2020 to 0.42 in 2024, suggesting that the company has been utilizing more of its own capital rather than relying on debt to finance its operations.

The Debt-to-equity ratio also exhibited a decreasing trend, dropping from 0.79 in 2020 to 0.72 in 2024, which implies a lower dependency on debt funding relative to equity.

Finally, the Financial leverage ratio increased from 2.48 in 2020 to 3.82 in 2024. Although this indicates a higher level of financial leverage, it is important to note that this metric should be evaluated in conjunction with other solvency ratios to gain a complete understanding of ZoomInfo Technologies Inc's financial health.

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Coverage ratios

Interest coverage, a crucial financial ratio, indicates a company's ability to meet interest obligations on its debt with its operating income. In the case of ZoomInfo Technologies Inc, the interest coverage ratio has shown fluctuating trends over the past few years.

As of December 31, 2020, the interest coverage ratio was 1.01, indicating that the company's operating income just covered its interest expenses. This could signal a precarious financial situation, as there is little margin for error or unexpected challenges.

However, there was a significant improvement in the interest coverage ratio by December 31, 2021, reaching 3.80. This suggests that the company's operating income was almost four times its interest expenses, showing a more favorable position in terms of debt servicing capability.

Subsequently, by December 31, 2022, the interest coverage ratio increased further to 5.09, reflecting a continued strengthening of ZoomInfo's ability to cover its interest obligations comfortably with its operating income.

By December 31, 2023, the interest coverage ratio reached an even healthier level of 9.60, indicating a robust financial position and a high level of confidence in the company's ability to service its debt obligations.

However, there was a slight decline in the interest coverage ratio by December 31, 2024, to 2.48. While still above 1, this decrease might raise some concerns about the company's ability to cover its interest expenses comfortably compared to the previous year.

Overall, it is essential for investors and stakeholders to monitor trends in ZoomInfo's interest coverage ratio closely to assess the company's financial health and ability to meet its debt obligations sustainably.