Bill Com Holdings Inc (BILL)

Cash ratio

		Jun 30, 2024	Jun 30, 2023	Jun 30, 2022	Jun 30, 2021	Jun 30, 2020
Cash and cash equivalents	US$ in thousands	985,941	1,617,150	1,596,540	509,615	573,643
Short-term investments	US$ in thousands	601,535	1,043,110	1,108,490	655,314	123,974
Total current liabilities	US$ in thousands	4,063,020	3,753,440	3,408,660	2,325,660	1,676,850
Cash ratio		0.39	0.71	0.79	0.50	0.42

June 30, 2024 calculation

Cash ratio = (Cash and cash equivalents + Short-term investments) ÷ Total current liabilities
= ($985,941K + $601,535K) ÷ $4,063,020K
= 0.39

The cash ratio of Bill Com Holdings Inc has shown fluctuations over the period under consideration. As of June 30, 2020, the cash ratio stood at 0.42, indicating that the company had 42 cents of cash for every dollar of current liabilities. Subsequently, there was an improvement in the cash ratio to 0.50 by June 30, 2021, suggesting a stronger liquidity position. The ratio further increased significantly to 0.79 by June 30, 2022, showcasing a substantial increase in available cash compared to current liabilities.

However, by June 30, 2023, there was a slight dip in the cash ratio to 0.71, although the company's liquidity remained relatively robust. The ratio then dropped notably to 0.39 by June 30, 2024, indicating that the company had 39 cents of cash for every dollar of current liabilities, which may raise concerns about the ability to meet short-term obligations solely based on cash.

Overall, the cash ratio trend of Bill Com Holdings Inc reveals variations in its liquidity position, with fluctuations that warrant further examination to understand the underlying reasons for the changes observed.