Bill Com Holdings Inc (BILL)

Cash ratio

		Jun 30, 2025	Jun 30, 2024	Jun 30, 2023	Jun 30, 2022	Jun 30, 2021
Cash and cash equivalents	US$ in thousands	1,139,970	985,941	1,617,150	1,596,540	509,615
Short-term investments	US$ in thousands	1,180,110	601,535	1,043,110	1,108,490	655,314
Total current liabilities	US$ in thousands	4,588,660	4,063,020	3,753,440	3,408,660	2,325,660
Cash ratio		0.51	0.39	0.71	0.79	0.50

June 30, 2025 calculation

Cash ratio = (Cash and cash equivalents + Short-term investments) ÷ Total current liabilities
= ($1,139,970K + $1,180,110K) ÷ $4,588,660K
= 0.51

The cash ratio for Bill Com Holdings Inc over the period from June 30, 2021 to June 30, 2025 exhibits notable fluctuations, reflecting shifts in the company’s short-term liquidity position.

In June 2021, the cash ratio stood at 0.50, indicating that, at that time, the company possessed cash and cash equivalents sufficient to cover approximately half of its current liabilities. This suggests a moderate liquidity buffer, though the company was reliant on other current assets to meet short-term obligations.

By June 30, 2022, the cash ratio increased significantly to 0.79. This rise indicates an improved liquidity stance, with nearly 79% of current liabilities covered by cash and cash equivalents, underscoring a period of enhanced liquidity safeguarding the company's ability to meet immediate obligations without reliance on additional current assets.

In the subsequent year, June 30, 2023, the ratio declined slightly to 0.71. Although still strong, this reduction signals a slight diminishment in immediate liquidity coverage, potentially due to increased current liabilities or a decrease in cash holdings.

However, the ratio experienced a considerable drop by June 30, 2024, reaching 0.39. This significant decrease suggests a deterioration in the company's short-term liquidity position, with cash held only covering roughly 39% of current liabilities. Such a decline may imply increased short-term obligations, reduced cash reserves, or a combination of both, raising concerns about the firm's capacity to satisfy immediate liabilities solely through cash resources.

Finally, on June 30, 2025, the cash ratio marginally increased again to 0.51, reflecting a partial recovery. This uptick could be attributed to cash inflows or a reduction in current liabilities, improving the liquidity buffer slightly but remaining below the levels observed in 2022 and 2023.

Overall, the trend indicates variable liquidity management and highlights periods of both strength and concern regarding Bill Com Holdings Inc's capacity to meet immediate liabilities through cash reserves alone. The fluctuations suggest the need for ongoing monitoring of cash levels relative to short-term obligations to assess financial resilience over time.