Bill Com Holdings Inc (BILL)

Short-term

Turnover ratios

Based on the provided data, we can analyze and interpret the activity ratios of Bill Com Holdings Inc as follows:

1. Inventory Turnover: The inventory turnover ratio indicates how efficiently the company is managing its inventory. The data shows that Bill Com Holdings Inc had an inventory turnover of 0.28 times at the end of December 2022, which improved slightly to 0.33 times by the end of September 2023. However, there is no data available for other periods.

2. Receivables Turnover: The receivables turnover ratio measures how effectively the company is collecting payments from its customers. Bill Com Holdings Inc had a receivables turnover of 44.05 times at the end of December 2023, which increased to 49.80 times by the end of December 2024. The turnover improved steadily throughout the periods analyzed.

3. Payables Turnover: The payables turnover ratio reflects how long the company takes to pay its suppliers. The data shows that Bill Com Holdings Inc had a payables turnover of 181.38 times at the end of December 2024, indicating that the company paid its suppliers frequently during that period. The payables turnover ratio fluctuated significantly over the periods analyzed.

4. Working Capital Turnover: The working capital turnover ratio demonstrates how efficiently the company is using its working capital to generate sales. Bill Com Holdings Inc had a working capital turnover of 0.53 times at the end of December 2024, showing an improvement in the utilization of working capital. The turnover ratio increased consistently over the periods examined.

In conclusion, based on the activity ratios analysis, Bill Com Holdings Inc improved its efficiency in managing receivables and working capital turnover over the analyzed periods. However, there is a lack of data for inventory turnover, and the payables turnover ratio showed significant fluctuations. Monitoring these ratios can provide insights into the company's operational efficiency and financial health.

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Average number of days

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

1. Days of Inventory on Hand (DOH):
- The company's DOH has been increasing steadily over the years, reaching a peak of approximately 1,269.84 days by the end of December 2023. This indicates that the company is holding inventory for an extended period, potentially tying up capital and increasing the risk of obsolescence.

2. Days of Sales Outstanding (DSO):
- The DSO for Bill Com Holdings Inc has shown fluctuations over the years, with some periods experiencing an increase in the number of days it takes to collect sales revenue. However, there has been an overall decreasing trend in recent periods, with the DSO reaching as low as 7.33 days by the end of December 2024. This suggests an improvement in the company's efficiency in collecting receivables.

3. Number of Days of Payables:
- The number of days of payables for the company has shown a decreasing trend overall, indicating that the company is taking fewer days to pay its suppliers. This can be seen as a positive sign as it may suggest stronger negotiation power or more efficient cash management practices.

In summary, the company's inventory management could be a concern due to the high DOH, while the improvement in DSO and efficient payables management indicate positive trends in working capital management. Further analysis is recommended to understand the impact of these activity ratios on the company's overall financial performance and cash flow management.

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Long-term

The Fixed Asset Turnover ratio for Bill Com Holdings Inc has been showing a positive trend over the years, increasing from 7.76 in September 2020 to 15.24 in December 2024. This indicates that the company is generating more revenue for each dollar invested in fixed assets, reflecting increased efficiency in utilizing its long-term assets to generate sales.

Similarly, the Total Asset Turnover ratio has also been gradually improving, rising from 0.07 in September 2020 to 0.15 in December 2024. This suggests that the company has been more effective in generating sales relative to its total assets, demonstrating improved productivity and utilization of all assets, including fixed and current assets.

Overall, the increasing trend in both Fixed Asset Turnover and Total Asset Turnover ratios for Bill Com Holdings Inc indicates an improvement in the company's efficiency in generating sales from its long-term and total assets, respectively, which is a positive sign for its operational performance and asset management capability.