Bill Com Holdings Inc (BILL)

Liquidity ratios

	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
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
Quick ratio	0.54	0.37	0.40	0.48	0.63	0.72	0.72	0.81	0.73	0.80	0.80	0.64	0.60	0.77	0.51	0.89	0.77	0.41
Cash ratio	0.54	0.36	0.39	0.47	0.62	0.72	0.71	0.80	0.72	0.79	0.79	0.63	0.60	0.77	0.50	0.88	0.77	0.41

The liquidity ratios of Bill Com Holdings Inc show varying levels of short-term financial strength over the periods analyzed. The current ratio, which indicates the company's ability to cover its short-term liabilities with its current assets, has ranged between 1.39 and 1.92. The ratio generally stayed above 1, suggesting that the company had sufficient current assets to meet its short-term obligations.

The quick ratio, a more stringent measure of liquidity that excludes inventory from current assets, ranged from 0.37 to 0.89. This ratio reflects a more conservative view of the company's ability to meet short-term liabilities without relying on inventory sales. While generally lower than the current ratio, the quick ratio also remained above 1 in most periods, indicating an adequate level of liquidity.

The cash ratio, which measures the company's ability to cover its current liabilities with its cash and cash equivalents, ranged from 0.36 to 0.88. This ratio provides insight into the company's ability to meet immediate obligations using its most liquid assets. The cash ratio fluctuated over time but generally showed that the company had a reasonable level of cash reserves to meet its short-term liabilities.

Overall, Bill Com Holdings Inc maintained acceptable levels of liquidity over the periods analyzed, as indicated by the current, quick, and cash ratios. However, fluctuations in these ratios highlight the importance of monitoring liquidity regularly to ensure the company can meet its short-term financial commitments effectively.

Additional liquidity measure

		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
Cash conversion cycle	days	5.32	4.66	9.93	6.59	1,275.08	1,119.26	1,190.02	1,150.10	1,334.59	9.39	15.79	14.59	15.17	13.21	15.39	10.19	3.23	-4.67

The cash conversion cycle of Bill Com Holdings Inc has fluctuated significantly over the reporting periods. It started at -4.67 days on September 30, 2020, indicating a negative cycle where the company paid its suppliers after collecting from customers swiftly. However, by December 31, 2020, it turned positive at 3.23 days, which means the company started paying suppliers before receiving payments from customers.

The cycle continued to increase over the next few quarters, reaching its peak at over 1,000 days by the end of 2022. This extended cycle indicates a significant delay between paying suppliers and receiving cash from customers, potentially leading to liquidity challenges for the company.

Towards the end of 2023, the cash conversion cycle dropped significantly to 6.59 days, suggesting an improvement in the company's working capital management. By December 31, 2024, the cycle had decreased further to 5.32 days, indicating a more efficient conversion of inventory to cash.

Overall, the analysis highlights the importance of monitoring and managing the cash conversion cycle to ensure optimal liquidity and operational efficiency within Bill Com Holdings Inc.