Bill Com Holdings Inc (BILL)
Quick ratio
| Jun 30, 2024 | Jun 30, 2023 | Jun 30, 2022 | Jun 30, 2021 | Jun 30, 2020 | ||
|---|---|---|---|---|---|---|
| Cash | 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 |
| Receivables | US$ in thousands | 44,749 | 42,233 | 35,445 | 18,222 | 4,252 |
| Total current liabilities | US$ in thousands | 4,063,020 | 3,753,440 | 3,408,660 | 2,325,660 | 1,676,850 |
| Quick ratio | 0.40 | 0.72 | 0.80 | 0.51 | 0.42 |
June 30, 2024 calculation
Quick ratio = (Cash + Short-term investments + Receivables) ÷ Total current liabilities
= ($985,941K
+ $601,535K
+ $44,749K)
÷ $4,063,020K
= 0.40
The quick ratio of Bill Com Holdings Inc has shown variability over the years based on the provided data. As of June 30, 2020, the quick ratio was 0.42, indicating that the company had limited liquid assets to cover its current liabilities. However, there has been an improvement in the quick ratio over the subsequent years. By June 30, 2022, the quick ratio increased to 0.80, reflecting a stronger liquidity position where the company had sufficient quick assets to meet its short-term obligations.
Despite the improvement, there was a slight dip in the quick ratio to 0.72 by June 30, 2023, suggesting a potential decrease in liquidity compared to the previous year. Furthermore, by June 30, 2024, the quick ratio dropped to 0.40, indicating a significant decline in the company's ability to meet its short-term liabilities with its readily available assets.
Overall, while the quick ratio of Bill Com Holdings Inc has shown fluctuations over the years, it is essential for the company to maintain a healthy liquidity position to ensure its ability to cover immediate financial obligations. Additional analysis and consideration of the factors impacting liquidity would be beneficial to assess the company's overall financial health accurately.
Peer comparison
Jun 30, 2024