ZoomInfo Technologies Inc (ZI)
Interest coverage
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|
| Earnings before interest and tax (EBIT) | US$ in thousands | 434,000 | 242,200 | 166,800 | 70,000 |
| Interest expense | US$ in thousands | 45,200 | 47,600 | 43,900 | 69,300 |
| Interest coverage | 9.60 | 5.09 | 3.80 | 1.01 |
December 31, 2023 calculation
Interest coverage = EBIT ÷ Interest expense
= $434,000K ÷ $45,200K
= 9.60
The interest coverage ratio of ZoomInfo Technologies Inc. has shown a positive trend over the past five years, indicating an improvement in the company's ability to cover its interest obligations from its earnings. The ratio increased from 0.70 in 2019 to 5.97 in 2023, reflecting a substantial strengthening of the company's financial position and profitability. This suggests that ZoomInfo Technologies Inc. has ample earnings to cover its interest expenses, which is a positive indicator of financial health and stability. The consistent increase in the interest coverage ratio signifies improved financial performance and risk management by the company over the years.
Peer comparison
Dec 31, 2023