ZoomInfo Technologies Inc (ZI)

The solvency ratios of ZoomInfo Technologies Inc. indicate the company's ability to meet its long-term financial obligations and sustain its operations.

The debt-to-assets ratio measures the proportion of the company's assets financed by debt. ZoomInfo's debt-to-assets ratio has been relatively stable over the years, decreasing from 0.77 in 2019 to 0.18 in 2023. This trend suggests that the company has been decreasing its reliance on debt to finance its assets, which is a positive indicator of financial health and lower risk.

The debt-to-capital ratio reflects the proportion of the company's capital that is funded by debt. ZoomInfo's debt-to-capital ratio has also shown a downward trend from 1.01 in 2019 to 0.37 in 2023. This decrease indicates that the company has been relying less on debt financing relative to its overall capital structure, which reduces financial risk and enhances solvency.

The debt-to-equity ratio compares the amount of debt to shareholders' equity. ZoomInfo's debt-to-equity ratio has fluctuated over the years, with a significant decrease from 1.48 in 2020 to 0.58 in 2023. This decline demonstrates that the company has been reducing its debt relative to equity, further improving its financial stability and decreasing financial leverage.

The financial leverage ratio measures the extent to which the company is using debt to finance its operations. ZoomInfo's financial leverage ratio has also decreased significantly over the years, from 4.63 in 2019 to 3.24 in 2023. Lower financial leverage indicates a reduced reliance on debt financing, which can enhance the company's ability to weather economic downturns and meet its financial obligations.

Overall, the decreasing trend in solvency ratios such as the debt-to-assets ratio, debt-to-capital ratio, debt-to-equity ratio, and financial leverage ratio for ZoomInfo Technologies Inc. indicates an improvement in the company's financial health and resilience, as it has been reducing its reliance on debt and strengthening its capital structure over time.

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Coverage ratios

ZoomInfo Technologies Inc.'s interest coverage ratio has shown a positive trend over the past five years, increasing from 0.70 in 2019 to 5.97 in 2023. This indicates the company's ability to meet its interest obligations from its operating income. Particularly noteworthy is the significant improvement from 2020 to 2021, where the ratio more than quadrupled. The consistent growth in the interest coverage ratio reflects an enhanced capacity to manage its interest expenses and suggests improved financial health and stability for the company.