ZoomInfo Technologies Inc (ZI)
Interest coverage
Dec 31, 2024 | Sep 30, 2024 | Jun 30, 2024 | Mar 31, 2024 | 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 | ||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Earnings before interest and tax (EBIT) (ttm) | US$ in thousands | 94,000 | 281,200 | 308,800 | 395,500 | 434,000 | 327,400 | 317,900 | 289,300 | 242,200 | 193,700 | 150,900 | 138,400 | 166,800 | 134,200 | 131,400 | 105,300 |
Interest expense (ttm) | US$ in thousands | 39,300 | 40,900 | 43,200 | 45,400 | 45,200 | 46,300 | 46,000 | 45,700 | 47,600 | 48,500 | 50,800 | 49,200 | 43,900 | 40,500 | 36,300 | 51,300 |
Interest coverage | 2.39 | 6.88 | 7.15 | 8.71 | 9.60 | 7.07 | 6.91 | 6.33 | 5.09 | 3.99 | 2.97 | 2.81 | 3.80 | 3.31 | 3.62 | 2.05 |
December 31, 2024 calculation
Interest coverage = EBIT (ttm) ÷ Interest expense (ttm)
= $94,000K ÷ $39,300K
= 2.39
ZoomInfo Technologies Inc's interest coverage ratio has exhibited some fluctuations over the period from March 31, 2021, to December 31, 2024. The interest coverage ratio indicates the company's ability to meet its interest payment obligations using its operating income.
Initially, the interest coverage ratio stood at 2.05 on March 31, 2021, suggesting a relatively lower ability to cover interest expenses with operating income. However, there was a gradual improvement in the ratio in subsequent quarters, reaching a peak of 9.60 on December 31, 2023.
The trend of improvement in the interest coverage ratio indicates that ZoomInfo's operating income was sufficient to cover its interest expenses during most of the period under review. However, there was a notable decline in the ratio in the later period, dropping to 2.39 on December 31, 2024, which may raise some concern regarding the company's ability to comfortably service its interest payments.
Overall, while the interest coverage ratio of ZoomInfo Technologies Inc has shown variability, it is important for investors and analysts to continue monitoring this ratio to ensure the company's financial health and stability in meeting its debt obligations.
Peer comparison
Dec 31, 2024