Bill Com Holdings Inc (BILL)

Working capital turnover

Jun 30, 2024 Jun 30, 2023 Jun 30, 2022 Jun 30, 2021 Jun 30, 2020
Revenue US$ in thousands 1,337,410 1,043,850 633,252 210,162 157,371
Total current assets US$ in thousands 6,314,820 6,673,160 6,279,390 3,606,040 2,379,450
Total current liabilities US$ in thousands 4,063,020 3,753,440 3,408,660 2,325,660 1,676,850
Working capital turnover 0.59 0.36 0.22 0.16 0.22

June 30, 2024 calculation

Working capital turnover = Revenue ÷ (Total current assets – Total current liabilities)
= $1,337,410K ÷ ($6,314,820K – $4,063,020K)
= 0.59

The working capital turnover of Bill Com Holdings Inc has shown fluctuation over the past five years. In June 2020, the working capital turnover was 0.22, indicating that the company generated $0.22 in revenue for every dollar of working capital invested. This ratio decreased to 0.16 by June 2021, suggesting a decrease in efficiency in utilizing working capital to generate revenue.

However, the working capital turnover improved in the following years, reaching 0.22 again by June 2022 and showing a significant increase to 0.36 by June 2023. This uptrend indicates that the company was able to increase its revenue relative to its working capital investment during these periods.

Moreover, by June 2024, the working capital turnover ratio surged to 0.59, signaling a substantial improvement in the efficiency of utilizing working capital to generate revenue. This significant increase suggests that the company effectively managed its working capital resources to generate a higher level of sales.

Overall, while the working capital turnover of Bill Com Holdings Inc has displayed variability over the years, the trend has been generally positive, with notable improvements in efficiency observed in recent years. This indicates that the company has been increasingly effective in generating revenue relative to its working capital investment.