Bill Com Holdings Inc (BILL)

Return on equity (ROE)

		Jun 30, 2025	Jun 30, 2024	Jun 30, 2023	Jun 30, 2022	Jun 30, 2021
Net income	US$ in thousands	23,799	-28,878	-223,725	-326,361	-98,720
Total stockholders’ equity	US$ in thousands	3,914,040	4,134,200	4,085,970	4,043,690	2,529,590
ROE		0.61%	-0.70%	-5.48%	-8.07%	-3.90%

June 30, 2025 calculation

ROE = Net income ÷ Total stockholders’ equity
= $23,799K ÷ $3,914,040K
= 0.61%

The analysis of Bill Com Holdings Inc.'s return on equity (ROE) over the period from June 30, 2021, to June 30, 2025, indicates a significant improvement in the company's profitability relative to shareholders' equity.

Initially, in June 2021, the ROE was recorded at -3.90%, reflecting a slight negative return on shareholders’ equity, which suggests the company was experiencing losses or inefficiencies in generating profit from equity during that period. The situation worsened by June 2022, with the ROE declining further to -8.07%, indicating an increased erosion of shareholder value and possibly amplified losses or reduced profitability.

However, by June 2023, the ROE demonstrated a positive turnaround, improving to -5.48%. Although still negative, this suggests the company was beginning to reverse its prior losses and perhaps implementing effective strategies aimed at restoring profitability. Continuing this positive trend, the ROE moved closer to zero by June 2024, reaching -0.70%. This near-zero figure implies the company was operating at a break-even level from an equity perspective, with minimal net income relative to shareholders' equity.

Most notably, by June 2025, the ROE turned positive at 0.61%. This transition from negative to positive indicates a meaningful recovery in the company's ability to generate profit on shareholders’ equity. It suggests that the company has either improved its operations, increased its profitability margins, or reduced losses sufficiently to produce a modest but positive return for shareholders.

Overall, the trajectory of Bill Com Holdings Inc.’s ROE over this period reflects a gradual but consistent improvement in financial performance. The transition from negative values toward positive territory demonstrates progress in restoring profitability and potentially rebuilding shareholder value. However, the relatively modest ROE in 2025 signals that while the company is on a positive trajectory, it may still require further improvement to achieve more substantial and sustainable profitability levels.