Bill Com Holdings Inc (BILL)

Quick ratio

		Jun 30, 2025	Jun 30, 2024	Jun 30, 2023	Jun 30, 2022	Jun 30, 2021
Cash	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
Receivables	US$ in thousands	717,449	725,265	486,883	280,437	165,315
Total current liabilities	US$ in thousands	4,588,660	4,063,020	3,753,440	3,408,660	2,325,660
Quick ratio		0.66	0.57	0.84	0.88	0.57

June 30, 2025 calculation

Quick ratio = (Cash + Short-term investments + Receivables) ÷ Total current liabilities
= ($1,139,970K + $1,180,110K + $717,449K) ÷ $4,588,660K
= 0.66

The quick ratio of Bill Com Holdings Inc. demonstrates fluctuations over the four-year period from June 30, 2021, to June 30, 2025. As of June 30, 2021, the company's quick ratio stood at 0.57, indicating that the firm possessed approximately 57 cents in liquid assets for every dollar of current liabilities, suggesting limited short-term liquidity and potential challenges in meeting immediate obligations without relying on inventory sales.

By June 30, 2022, the quick ratio increased substantially to 0.88, approaching closer to a one-to-one coverage, which could imply an improvement in the company's liquid asset position relative to its current liabilities. This upward movement may reflect enhanced liquidity management, improved cash reserves, or reduction in short-term liabilities.

In the subsequent year, June 30, 2023, the quick ratio slightly decreased to 0.84. Despite the small decline, the ratio remained significantly higher than the 2021 level, maintaining a relatively solid liquidity position, although it still signals a dependence on liquid assets not exceeding current liabilities.

The ratio experienced a notable decline again by June 30, 2024, returning to 0.57, the same level as in 2021. This regression indicates a decline in liquid assets relative to current liabilities, potentially pointing to increased short-term obligations, decreased cash or liquid marketable securities, or increased reliance on inventory or other less liquid assets to meet current liabilities.

Finally, as of June 30, 2025, the quick ratio increased moderately to 0.66. This improvement, while not reaching the 2022 peak, suggests a modest recovery in liquidity, with the company's liquid asset coverage improving but still remaining below the ideal level closer to or above 1.0. Overall, the trend in the quick ratio reflects periods of liquidity strengthening primarily in 2022, followed by fluctuations that suggest intermittently constrained short-term liquidity, with the latest data showing an incremental recovery.