ZoomInfo Technologies Inc (ZI)
Financial leverage ratio
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|
| Total assets | US$ in thousands | 6,868,300 | 7,136,400 | 6,852,900 | 2,327,400 |
| Total stockholders’ equity | US$ in thousands | 2,119,300 | 2,271,800 | 1,997,900 | 939,600 |
| Financial leverage ratio | 3.24 | 3.14 | 3.43 | 2.48 |
December 31, 2023 calculation
Financial leverage ratio = Total assets ÷ Total stockholders’ equity
= $6,868,300K ÷ $2,119,300K
= 3.24
The financial leverage ratio of ZoomInfo Technologies Inc. has shown fluctuations over the past five years. The ratio decreased from 4.63 in 2020 to 3.14 in 2022, indicating a decrease in the company's reliance on debt to finance its operations. However, there was an increase in the financial leverage ratio to 3.24 in 2023, suggesting that the company may have taken on more debt relative to its equity in the most recent period. The ratio was not available for 2019.
Overall, the trend in the financial leverage ratio indicates changes in the company's capital structure and its use of debt financing. Investors and analysts should closely monitor this ratio to assess the company's financial risk and stability, as higher leverage can increase both potential returns and risks for shareholders.
Peer comparison
Dec 31, 2023