ZoomInfo Technologies Inc (ZI)

Debt-to-equity ratio

		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	Dec 31, 2020	Sep 30, 2020	Jun 30, 2020
Long-term debt	US$ in thousands	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	744,900	744,300	743,700
Total stockholders’ equity	US$ in thousands	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	939,600	820,500	783,300
Debt-to-equity ratio		0.58	0.55	0.52	0.53	0.54	0.56	0.58	0.60	0.62	0.67	0.75	0.78	0.79	0.91	0.95

December 31, 2023 calculation

Debt-to-equity ratio = Long-term debt ÷ Total stockholders’ equity
= $1,226,400K ÷ $2,119,300K
= 0.58

ZoomInfo Technologies Inc.'s debt-to-equity ratio has displayed a consistent downward trend over the past eight quarters, indicating a strengthening financial position in terms of leverage. The ratio decreased from 0.60 in Q1 2022 to 0.53 in Q2 2023. This suggests that the company has been reducing its reliance on debt financing in favor of equity, which can be seen as a positive sign of financial stability and operational efficiency.

With a debt-to-equity ratio hovering around 0.53 to 0.58 in the most recent quarters, ZoomInfo's capital structure appears to be well-balanced, with a reasonable level of debt relative to equity. This indicates that the company is not overly leveraged and has a healthy mix of debt and equity financing. Investors and lenders may view this ratio favorably as it indicates a lower level of financial risk and a more sustainable capital structure.

Overall, the downward trend in ZoomInfo's debt-to-equity ratio suggests a solid financial footing and effective management of capital resources. It indicates that the company has been managing its debt levels prudently while maintaining a healthy equity base, which can contribute to long-term financial stability and growth.