Bill Com Holdings Inc (BILL)
Cash conversion cycle
| Jun 30, 2024 | Jun 30, 2023 | Jun 30, 2022 | Jun 30, 2021 | Jun 30, 2020 | ||
|---|---|---|---|---|---|---|
| Days of inventory on hand (DOH) | days | — | 1,178.24 | — | — | — |
| Days of sales outstanding (DSO) | days | 12.21 | 14.77 | 20.43 | 31.65 | 9.86 |
| Number of days of payables | days | 2.55 | 2.99 | 4.91 | 16.25 | 8.90 |
| Cash conversion cycle | days | 9.66 | 1,190.01 | 15.52 | 15.40 | 0.96 |
June 30, 2024 calculation
Cash conversion cycle = DOH + DSO – Number of days of payables
= — + 12.21 – 2.55
= 9.66
The cash conversion cycle of Bill Com Holdings Inc has fluctuated significantly over the past five years. In June 2020, the company had a very efficient cash conversion cycle of just 0.96 days, indicating that it was able to swiftly convert its investments in inventory into cash.
However, the efficiency decreased notably in the following years. By June 2021, the cash conversion cycle increased to 15.40 days, and it remained relatively stable in June 2022 at 15.52 days.
There was a significant anomaly in June 2023, with the cash conversion cycle skyrocketing to 1,190.01 days. This extreme increase suggests potential issues with managing inventory, collecting receivables, or paying bills during that period.
The situation improved in June 2024, with the cash conversion cycle decreasing to 9.66 days. While still higher than the initial level in 2020, the reduction indicates a positive trend towards a more efficient cash conversion process.
Overall, the company's cash conversion cycle has experienced both highs and lows over the years, reflecting fluctuations in working capital management and operational efficiency. Further analysis would be required to understand the specific factors driving these changes and to implement strategies for optimizing the cash conversion cycle in the future.
Peer comparison
Jun 30, 2024