Bill Com Holdings Inc (BILL)

Cash conversion cycle

		Jun 30, 2025	Mar 31, 2025	Dec 31, 2024	Sep 30, 2024	Jun 30, 2024	Mar 31, 2024	Dec 31, 2023	Sep 30, 2023	Jun 30, 2023	Mar 31, 2023	Dec 31, 2022	Sep 30, 2022	Jun 30, 2022	Mar 31, 2022	Dec 31, 2021	Sep 30, 2021	Jun 30, 2021	Mar 31, 2021	Dec 31, 2020	Sep 30, 2020
Days of inventory on hand (DOH)	days	—	—	—	—	—	—	6,182.60	5,813.65	6,314.74	6,133.24	7,314.55	—	—	—	—	—	—	—	—	—
Days of sales outstanding (DSO)	days	179.05	187.82	160.60	179.35	205.18	197.34	166.46	185.77	167.90	176.37	175.53	187.36	159.93	194.01	220.61	240.75	253.25	31.51	28.64	25.90
Number of days of payables	days	21.86	12.19	7.43	14.96	10.29	10.52	14.84	11.56	16.03	18.05	30.03	26.21	25.04	28.26	42.98	60.31	70.30	30.55	40.03	56.92
Cash conversion cycle	days	157.19	175.63	153.16	164.39	194.89	186.82	6,334.22	5,987.86	6,466.60	6,291.55	7,460.05	161.15	134.89	165.76	177.63	180.44	182.95	0.96	-11.38	-31.02

June 30, 2025 calculation

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

The cash conversion cycle (CCC) of Bill Com Holdings Inc exhibits significant variability over the observed periods, reflecting dynamic operational efficiencies and potential data inconsistencies.

Initially, the CCC was negative at -31.02 days as of September 30, 2020, indicating the company was able to collect receivables and settle payables before the duration of inventory holding periods, thus suggesting a highly efficient cash flow situation. This negative figure improved further to -11.38 days by December 31, 2020 but then approached neutrality with a marginally positive 0.96 days as of March 31, 2021, indicating a near-break-even point where the cash inflow from receivables roughly matches the outflows for payables and inventory.

However, a notable shift occurred in the subsequent years. On June 30, 2021, the CCC jumped to 182.95 days, and it remained at elevated levels with readings of approximately 180 days into September 2021 and December 2021, signifying extended periods of net working capital tie-up. This prolonged cycle suggests the company’s cash is being locked up for substantial durations, possibly due to increased inventory holdings or delayed receivables, or a combination thereof.

In 2022, the CCC demonstrated some improvement but still remained elevated, with figures around 165 to 134 days through the year. Nonetheless, the data from December 2022 suggests an extraordinary anomaly, with a CCC reported at approximately 7,460 days—an implausible value that likely indicates a data error or a misreporting event.

Similarly, the first quarter of 2023 recorded a high but relatively lower figure of around 6,291 days, followed by persistently high values in mid-2023, around 6,467 days. These figures illustrate a period of extreme inefficiency or potential data inaccuracies, as such extended durations are not typical in normal operational environments.

In the most recent periods, there are signs of substantial improvement. As of March 31, 2024, the CCC decreased dramatically to approximately 187 days, and further decreased to 154 days as of December 31, 2024, indicating a potential return toward more manageable working capital cycles. The subsequent data for 2025 suggests the cycle further stabilized around 157 to 176 days, pointing to ongoing efforts or natural adjustments in supply chain, receivables, and payables management.

Overall, the historical data reveal a pattern of initial efficiency improvements, severe anomalies in the latter years—likely data errors—and some signs of recovery in recent periods. The cyclic fluctuations highlight potential operational challenges or volatility in the company's working capital management, emphasizing the importance of scrutinizing underlying financial and operational data for accurate assessment.