ZoomInfo Technologies Inc (ZI)
Financial leverage ratio
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Total assets | US$ in thousands | 6,467,600 | 6,868,300 | 7,136,400 | 6,852,900 | 2,327,400 |
| Total stockholders’ equity | US$ in thousands | 1,693,500 | 2,119,300 | 2,271,800 | 1,997,900 | 939,600 |
| Financial leverage ratio | 3.82 | 3.24 | 3.14 | 3.43 | 2.48 |
December 31, 2024 calculation
Financial leverage ratio = Total assets ÷ Total stockholders’ equity
= $6,467,600K ÷ $1,693,500K
= 3.82
The financial leverage ratio of ZoomInfo Technologies Inc has shown an increasing trend over the past five years, from 2.48 in December 31, 2020, to 3.82 in December 31, 2024. This indicates that the company has been relying more on debt to finance its operations and growth, as compared to its equity. While increasing leverage can potentially amplify returns for shareholders, it also increases financial risk as the company becomes more leveraged. It is important for investors and analysts to closely monitor the trend in the financial leverage ratio to assess the company's ability to manage its debt levels effectively.
Peer comparison
Dec 31, 2024