Bill Com Holdings Inc (BILL)

Days of sales outstanding (DSO)

		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	Dec 31, 2020	Sep 30, 2020
Receivables turnover		49.80	42.43	29.09	40.94	44.05	46.34	24.72	27.89	27.07	25.59	17.81	18.60	15.67	14.07	11.53	19.43	25.52	33.43
DSO	days	7.33	8.60	12.55	8.91	8.29	7.88	14.77	13.09	13.48	14.26	20.49	19.62	23.30	25.95	31.65	18.78	14.30	10.92

December 31, 2024 calculation

DSO = 365 ÷ Receivables turnover
= 365 ÷ 49.80
= 7.33

Days Sales Outstanding (DSO) is a financial ratio that measures the average number of days it takes for a company to collect its accounts receivable. A lower DSO indicates that the company is collecting payments from its customers more quickly, which is generally seen as a positive sign.

Analyzing Bill Com Holdings Inc's DSO over the past several quarters, we can see fluctuations in the trend. In September 2020, the DSO was reported at 10.92 days, suggesting that the company was efficient in collecting payments from customers. However, the DSO increased over the following quarters, reaching a peak of 31.65 days in June 2021, indicating a longer time for accounts receivable collections.

Subsequently, there was a gradual improvement in DSO, with the ratio declining to 7.88 days by September 2023 and remaining relatively stable around this level in the following quarters. This downward trend suggests that Bill Com Holdings Inc has been more effective in managing its accounts receivable and collecting payments in a timely manner.

The company's DSO of 7.33 days as of December 31, 2024, reflects a strong performance in accounts receivable management, indicating that Bill Com Holdings Inc has significantly improved its ability to convert credit sales into cash quickly. Overall, the decreasing trend in DSO over the quarters is a positive indicator of the company's financial health and efficiency in managing working capital.