Bill Com Holdings Inc (BILL)

Cash conversion cycle

Jun 30, 2025 Jun 30, 2024 Jun 30, 2023 Jun 30, 2022 Jun 30, 2021
Days of inventory on hand (DOH) days 6,314.70 7,910.62
Days of sales outstanding (DSO) days 179.05 205.18 167.90 159.45 253.25
Number of days of payables days 21.86 11.59 16.03 25.04 70.30
Cash conversion cycle days 157.19 193.60 6,466.57 8,045.02 182.95

June 30, 2025 calculation

Cash conversion cycle = DOH + DSO – Number of days of payables
= — + 179.05 – 21.86
= 157.19

The analysis of Bill Com Holdings Inc's cash conversion cycle (CCC) over the specified periods indicates substantial fluctuations with notable implications for the company's cash flow management.

On June 30, 2021, the company's CCC was approximately 183 days, reflecting a cycle where cash invested in operations was tied up for nearly six months before recoveries through receivables and payables effects.

By June 30, 2022, there was a dramatic increase to approximately 8,045 days, representing a significant elongation of the cash conversion cycle. Such an extraordinary rise suggests potential distress or extraordinary operational factors, such as extended inventory holding periods, delays in receivables collection, excessive accounts payable deferrals, or inaccuracies in data reporting. This excess duration of cycle duration indicates the company’s operations for that year were markedly inefficient, potentially leading to substantial cash flow strain.

The subsequent year, on June 30, 2023, the cycle decreased markedly to approximately 6,467 days, implying some operational improvements but still remaining at an exceptionally high level relative to typical industry standards. This reduction suggests efforts to streamline cash flow processes or improve receivables and payables management, yet the cycle remained abnormally extended.

In the following years, the CCC notably contracted, with the figure dropping to approximately 194 days by June 30, 2024, and further to about 157 days by June 30, 2025. These reductions reflect significant enhancements in operational efficiency, indicating the company has taken measures to shorten the cash conversion cycle substantially. Such improvements likely result from better inventory management, more prompt receivables collections, or quicker payments to suppliers, and generally signal a move toward healthier cash flow dynamics.

Overall, the timeline reveals periods of severe inefficiency, particularly in 2022 and 2023, with the most recent data demonstrating a partial recovery toward more typical cycle durations. The trend suggests that, although the company experienced extraordinary fluctuations, recent efforts have been effective in reducing the cash conversion cycle to more manageable levels, which could positively influence liquidity and financial stability moving forward.