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.