ZoomInfo Technologies Inc (ZI)
Interest coverage
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Earnings before interest and tax (EBIT) | US$ in thousands | 97,400 | 434,000 | 242,200 | 166,800 | 70,000 |
| Interest expense | US$ in thousands | 39,300 | 45,200 | 47,600 | 43,900 | 69,300 |
| Interest coverage | 2.48 | 9.60 | 5.09 | 3.80 | 1.01 |
December 31, 2024 calculation
Interest coverage = EBIT ÷ Interest expense
= $97,400K ÷ $39,300K
= 2.48
ZoomInfo Technologies Inc's interest coverage ratio has shown fluctuations over the past five years.
- As of December 31, 2020, the interest coverage ratio was low at 1.01, indicating that the company's ability to cover its interest expenses with its operating income was minimal.
- However, by December 31, 2021, there was a significant improvement in the interest coverage ratio to 3.80, suggesting that ZoomInfo's operating income had increased sufficiently to cover its interest expenses nearly four times over.
- The trend continued to improve by December 31, 2022, with the interest coverage ratio reaching 5.09, indicating a stronger ability to meet its interest obligations from operating income.
- By December 31, 2023, the interest coverage ratio further improved to 9.60, signaling a significant enhancement in the company's financial health and its ability to manage and cover interest expenses comfortably.
- However, there was a slight decline in the interest coverage ratio by December 31, 2024, dropping to 2.48, which might suggest a potential decrease in operating income relative to the interest expenses.
Overall, the upward trend in the interest coverage ratio from 2020 to 2023 indicates an improvement in the company's financial position and its ability to handle debt obligations, although the slight decline in 2024 warrants further monitoring to ensure sustainable financial health.
Peer comparison
Dec 31, 2024