ZoomInfo Technologies Inc (ZI)
Solvency ratios
| 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 | ||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Debt-to-assets ratio | 0.18 | 0.17 | 0.17 | 0.17 | 0.17 | 0.17 | 0.18 | 0.18 | 0.18 | 0.19 | 0.26 | 0.29 | 0.32 | 0.36 | 0.39 |
| Debt-to-capital ratio | 0.37 | 0.35 | 0.34 | 0.35 | 0.35 | 0.36 | 0.37 | 0.37 | 0.38 | 0.40 | 0.43 | 0.44 | 0.44 | 0.48 | 0.49 |
| Debt-to-equity ratio | 0.58 | 0.55 | 0.52 | 0.53 | 0.54 | 0.56 | 0.58 | 0.60 | 0.62 | 0.67 | 0.75 | 0.78 | 0.79 | 0.91 | 0.95 |
| Financial leverage ratio | 3.24 | 3.14 | 3.06 | 3.09 | 3.14 | 3.21 | 3.30 | 3.36 | 3.43 | 3.60 | 2.85 | 2.69 | 2.48 | 2.50 | 2.45 |
The solvency ratios of ZoomInfo Technologies Inc. indicate the company's ability to meet its long-term financial obligations.
1. Debt-to-assets ratio: ZoomInfo's debt-to-assets ratio has remained relatively stable around 0.17 to 0.18 over the quarters, indicating that the company finances about 17% to 18% of its assets through debt.
2. Debt-to-capital ratio: The debt-to-capital ratio shows ZoomInfo's financial leverage in terms of debt and equity. The ratios have ranged from 0.34 to 0.37, suggesting that approximately 34% to 37% of the company's capital structure is attributable to debt.
3. Debt-to-equity ratio: ZoomInfo's debt-to-equity ratio ranges from 0.53 to 0.60, indicating that the company relies more on debt financing compared to equity, with debt constituting approximately 53% to 60% of its total equity.
4. Financial leverage ratio: The financial leverage ratio, which measures the extent of a company's financial leverage, has shown a slight fluctuation between 3.06 to 3.36. This indicates that ZoomInfo's assets are funded through a higher proportion of debt compared to equity, with the company's leverage standing between 3.06 to 3.36 times its equity.
Overall, ZoomInfo Technologies Inc. maintains a moderate level of leverage, with a consistent but slightly increasing trend in its solvency ratios over the quarters, suggesting a stable financial position to meet its long-term obligations.
Coverage ratios
| 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 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Interest coverage | 9.60 | 7.07 | 6.91 | 6.33 | 5.09 | 3.99 | 2.97 | 2.81 | 3.80 | 3.31 | 3.62 | 2.05 |
The interest coverage ratio measures a company's ability to meet its interest obligations on its outstanding debt. A higher interest coverage ratio indicates a company's better ability to cover its interest expenses.
Analyzing ZoomInfo Technologies Inc.'s interest coverage ratios over the past eight quarters, we observe a general increasing trend from Q1 2022 to Q4 2023. The interest coverage ratio has improved consistently, which suggests that the company's earnings before interest and taxes (EBIT) have been sufficient to cover its interest expenses.
The interest coverage ratio was lowest in Q1 2022 at 2.84 and has since shown a positive trajectory, reaching a high of 5.97 in Q4 2023. This indicates a significant enhancement in the company's ability to cover its interest payments over time.
Overall, ZoomInfo Technologies Inc.'s improving interest coverage ratio demonstrates a favorable financial position with an increasing capacity to service its debt obligations through operating profits. Investors and creditors may view this trend positively as it signifies a reduced risk of default due to insufficient earnings to cover interest expenses.