Bill Com Holdings Inc (BILL)

Short-term

Turnover ratios

Based on the provided data, let's analyze the activity ratios of Bill Com Holdings Inc:

1. Inventory Turnover:
- The company didn't provide inventory turnover for June 30, 2020 and 2021.
- The inventory turnover for June 30, 2023 was 0.31, indicating that the company takes about 0.31 times to sell its inventory during the year.
- No data was available for the inventory turnover for June 30, 2024.

2. Receivables Turnover:
- The receivables turnover ratio decreased from 37.01 in June 30, 2020 to 11.53 in June 30, 2021, but then increased consistently to 29.89 in June 30, 2024.
- This suggests that the company started collecting its receivables more efficiently in recent years.

3. Payables Turnover:
- The payables turnover ratio improved significantly from 41.01 in June 30, 2020 to 142.86 in June 30, 2024.
- The increasing trend indicates that the company is taking longer to pay its suppliers, potentially improving cash flow management.

4. Working Capital Turnover:
- The working capital turnover increased from 0.22 in June 30, 2020 to 0.59 in June 30, 2024.
- This signifies that the company is generating more revenue per unit of working capital, indicating improved efficiency in utilizing its working capital.

In summary, Bill Com Holdings Inc has shown improvements in receivables turnover, payables turnover, and working capital turnover over the years, which indicates better management of its assets and liabilities to enhance operational efficiency. However, the lack of inventory turnover data for certain years limits a comprehensive analysis of the company's overall inventory management efficiency.

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Average number of days

Based on the provided data for Bill Com Holdings Inc activity ratios:

1. Days of Inventory on Hand (DOH):
- As of June 30, 2020, and June 30, 2021, specific data for Days of Inventory on Hand is not available.
- The Days of Inventory on Hand as of June 30, 2023, is 1,178.24 days, suggesting a significant inventory holding period.
- Data for June 30, 2024, is not available for this metric.

2. Days of Sales Outstanding (DSO):
- The Days of Sales Outstanding decreased from 9.86 days on June 30, 2020, to 31.65 days on June 30, 2021, indicating a longer period for the company to collect receivables.
- The trend reversed on June 30, 2022, with a decrease to 20.43 days, followed by further reductions to 14.77 days on June 30, 2023, and 12.21 days on June 30, 2024.

3. Number of Days of Payables:
- The number of days of payables increased from 8.90 days on June 30, 2020, to 16.25 days on June 30, 2021, indicating a longer period for the company to pay its debts.
- The trend reversed significantly on June 30, 2022, with a decrease to 4.91 days, followed by further reductions to 2.99 days on June 30, 2023, and 2.55 days on June 30, 2024, suggesting an improvement in managing payable obligations.

Analyzing these activity ratios provides insights into how efficiently Bill Com Holdings Inc manages its inventory, collects receivables, and pays its obligations. The trend in these ratios indicates changes in the company's operational efficiency over the years.

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Long-term

Bill Com Holdings Inc's fixed asset turnover ratio has exhibited significant fluctuations over the past five years. The ratio declined from 11.35 in June 2020 to 4.30 in June 2021, indicating that the company generated less revenue relative to its investment in fixed assets during that period. However, there was a notable recovery in the following years, with the ratio increasing to 11.11 in June 2022, 12.80 in June 2023, and 15.19 in June 2024. These higher ratios suggest that the company effectively utilized its fixed assets to generate sales, reflecting improved operational efficiency and potentially higher productivity.

In terms of total asset turnover, Bill Com Holdings Inc's performance also experienced fluctuations but generally showed an increasing trend over the five-year period. The total asset turnover ratio was recorded at 0.07 in June 2020, dropped to 0.04 in June 2021, but then steadily improved to 0.07 in June 2022, 0.11 in June 2023, and 0.15 in June 2024. This indicates that the company generated more revenue relative to its total assets in the later years, highlighting improved asset utilization efficiency.

Overall, the upward trend in both fixed asset turnover and total asset turnover ratios suggests that Bill Com Holdings Inc has been more effective in utilizing its assets to drive sales growth and generate revenue over the analyzed period. The company's ability to improve asset turnover ratios indicates positive operational performance and efficiency in converting assets into revenue.