Bill Com Holdings Inc (BILL)

Current ratio

		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
Total current assets	US$ in thousands	6,839,930	6,204,200	6,314,820	6,228,480	6,956,050	6,682,120	6,673,160	6,405,230	6,748,190	6,291,980	6,279,390	6,182,550	6,492,300	5,533,210	3,606,040	3,701,800	3,985,110	2,396,620
Total current liabilities	US$ in thousands	4,122,210	4,055,710	4,063,020	3,826,510	4,118,190	3,700,500	3,753,440	3,335,460	3,731,240	3,326,020	3,408,660	4,391,780	4,665,200	3,697,260	2,325,660	1,969,830	2,256,070	1,702,360
Current ratio		1.66	1.53	1.55	1.63	1.69	1.81	1.78	1.92	1.81	1.89	1.84	1.41	1.39	1.50	1.55	1.88	1.77	1.41

December 31, 2024 calculation

Current ratio = Total current assets ÷ Total current liabilities
= $6,839,930K ÷ $4,122,210K
= 1.66

The current ratio of Bill Com Holdings Inc has shown some fluctuations over the past few years. As of December 31, 2024, the company's current ratio stands at 1.66, indicating that it has $1.66 in current assets for every $1 in current liabilities.

The trend in the current ratio shows some variability, with some quarters showing higher ratios (e.g., March 31, 2023 with 1.92) and others lower ratios (e.g., December 31, 2021 with 1.39). Overall, the current ratio has generally been maintained above 1, which indicates the company has had sufficient current assets to cover its current liabilities.

The current ratio is a measure of a company's short-term liquidity and its ability to meet its short-term obligations. A ratio above 1 indicates that a company has more current assets than current liabilities, suggesting financial strength and the ability to cover its short-term debts. Conversely, a ratio below 1 may raise concerns about the company's liquidity and ability to meet its short-term obligations.

In the case of Bill Com Holdings Inc, the current ratio has generally remained at a healthy level, providing a buffer against liquidity risks. However, management should continue to monitor and manage the components of current assets and liabilities to maintain adequate liquidity levels for ongoing operations and financial stability.