Bill Com Holdings Inc (BILL)

Short-term

Turnover ratios

The analysis of Bill Com Holdings Inc.'s activity ratios over the period provided reflects significant variations and emerging trends across different operational metrics.

Inventory Turnover:
The company's inventory turnover ratios are absent for most periods, indicating either a lack of inventory or unavailability of data until December 2022. Starting from December 31, 2022, the ratio is measured at 0.05 and remains steady through March 31, 2023, June 30, 2023, and September 30, 2023, at 0.06. This low and stable turnover suggests sluggish inventory movement, implying excess inventory levels relative to sales or slow sales velocity, which could be a concern regarding inventory management efficiency.

Receivables Turnover:
Receivables turnover ratios display a fluctuating but generally improving trend. Throughout 2020, ratios decline from 14.09 in September to 12.74 in December, indicating a slight slowdown in collecting receivables. In 2021, ratios decrease further to a low of 1.44 in June but then recover to around 1.65 by December, suggesting increased collection efficiency. The upward trend continues into 2022 and 2023, peaking at 2.27 in December 2024. This progression reflects enhanced receivables collection practices, leading to quicker cash conversion from accounts receivable over time.

Payables Turnover:
The payables turnover ratios exhibit substantial fluctuation, with some periods indicating high efficiency (e.g., 49.11 on December 31, 2024) and others indicating extended payment cycles (e.g., 5.19 on June 30, 2021). A notable upward trend begins in 2022 and accelerates through 2023 and 2024, reaching a peak of 49.11 at the end of 2024. This pattern suggests periods of extending payables to suppliers, possibly to optimize cash flow, followed by periods of quicker payments. The varying ratios imply operational flexibility in managing supplier payments.

Working Capital Turnover:
The working capital turnover ratios demonstrate consistent improvement over time, increasing from 0.24 on September 30, 2020, to around 0.55 by June 30, 2025. The upward trend indicates more efficient utilization of working capital to generate sales, reflecting better operational efficiency in managing current assets and liabilities.

Overall Summary:
The activity ratios suggest that Bill Com Holdings Inc. has experienced a phase of improved receivables management, evidenced by rising receivables turnover ratios. The fluctuating payables turnover indicates a strategic or reactive approach to managing supplier payments, while the persistently low inventory turnover highlights potential issues with inventory management or sales volume. The steady increase in working capital turnover ratios signals enhancements in overall operational efficiency, leveraging cash and assets more effectively to support sales activities.

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Average number of days

The activity ratios of Bill Com Holdings Inc over the reported periods reflect significant fluctuations, notably in days of inventory on hand (DOH), days of sales outstanding (DSO), and days of payables.

Days of Inventory on Hand (DOH):
Throughout most of the periods, data for inventory days is not available ("— days"), indicating either the absence of inventory or unreported figures. The notable exceptions are toward the end of the period, where available data show extremely high DOH figures: approximately 7,314.55 days as of December 31, 2022, decreasing to around 5,813.65 days as of September 30, 2023, and then rising again to approximately 6,182.60 days in December 2023. Such extraordinarily high DOH suggests either an accounting anomaly, inventory not being recognized in traditional terms, or possible data irregularities, as these figures are significantly beyond typical industry levels.

Days of Sales Outstanding (DSO):
The DSO trend indicates a general increase from early 2020 to subsequent periods, with a notable spike in June 2021 reaching 253.25 days from around 25.90 days in September 2020. This surge could imply significant delays in collecting receivables during that period, potentially indicating deteriorating receivables management or extraordinary circumstances affecting collections. Post-2021, the DSO averages between approximately 160 to 200 days, such as 179.35 days in September 2024 and 187.82 days in March 2025, indicating a relatively elongated collection cycle that could impact liquidity and cash flow management efficiency.

Number of Days of Payables:
The payables period fluctuates over time but generally shows a decreasing trend from 56.92 days as of September 2020 to as low as approximately 7.43 days in December 2024. Shorter payables days indicate that the company is paying its suppliers more promptly over time, potentially strengthening supplier relationships or reflecting improved cash management. The variation in payables timing suggests episodic changes in payment policies or liquidity considerations.

Aggregate Analysis:
Overall, the activity ratios display inconsistent patterns with some periods exhibiting highly abnormal figures, especially regarding inventory. These anomalies complicate straightforward efficiency interpretations, necessitating further contextual information to clarify the underlying causes. The increasing trend in DSO, coupled with fluctuating but generally decreasing payables days, suggests potential liquidity management challenges or strategic shifts in credit and payment terms. The data points to a landscape of irregular activity ratios, highlighting potential areas for operational or financial review to understand underlying causes and assess operational efficiency better.

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Long-term

The long-term activity ratios for Bill Com Holdings Inc., encompassing the fixed asset turnover and total asset turnover, exhibit notable fluctuations and trends over the specified periods.

The fixed asset turnover ratio demonstrates considerable variability. Starting from 2.59 as of September 30, 2020, the ratio increased sharply, reaching a peak of 12.98 by June 30, 2023. This substantial rise indicates improved efficiency in generating sales from fixed assets during this period. However, by September 30, 2023, the ratio declined to 7.46, reflecting a decrease in asset utilization efficiency. The data for subsequent quarters up to December 2023 are unavailable, making it difficult to assess further developments beyond this point.

Conversely, the total asset turnover ratio remained relatively stable but exhibited a gentle upward trend. Beginning at 0.07 on September 30, 2020, it fluctuated modestly, reaching 0.12 by September 30, 2023. This incremental increase suggests a gradual improvement in the overall utilization of total assets to generate sales, although the ratio remains within a low range, indicating that assets continue to turn over relatively infrequently.

Overall, the analysis reveals that Bill Com Holdings Inc. experienced significant enhancements in its fixed asset efficiency over the analyzed period, culminating in peak ratios in mid-2023, followed by a decline. Meanwhile, the company's total asset turnover has shown consistent, modest improvement, reflecting steady but relatively modest progress in overall asset utilization efficiency. The absence of data beyond the first half of 2024 limits comprehensive assessment of future trends.