Bill Com Holdings Inc (BILL)
Return on equity (ROE)
| 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Net income (ttm) | US$ in thousands | 81,864 | 7,895 | -28,878 | -52,344 | -115,291 | -169,946 | -223,725 | -292,796 | -348,378 | -333,742 | -326,361 | -283,281 | -223,289 | -160,028 | -98,720 | -66,356 | -47,947 | -38,346 |
| Total stockholders’ equity | US$ in thousands | 3,809,390 | 4,013,240 | 4,134,200 | 4,058,730 | 3,951,840 | 4,118,110 | 4,085,970 | 4,104,340 | 4,083,880 | 4,047,530 | 4,043,690 | 4,068,320 | 4,093,330 | 4,110,640 | 2,529,590 | 870,461 | 876,748 | 718,768 |
| ROE | 2.15% | 0.20% | -0.70% | -1.29% | -2.92% | -4.13% | -5.48% | -7.13% | -8.53% | -8.25% | -8.07% | -6.96% | -5.45% | -3.89% | -3.90% | -7.62% | -5.47% | -5.33% |
December 31, 2024 calculation
ROE = Net income (ttm) ÷ Total stockholders’ equity
= $81,864K ÷ $3,809,390K
= 2.15%
The return on equity (ROE) of Bill Com Holdings Inc has shown a persistent negative trend from September 2020 to September 2022, indicating that the company was not generating satisfactory returns for its shareholders relative to the equity invested. The declining ROE figures suggest a struggle in utilizing shareholder funds efficiently to generate profits during this period.
However, starting in December 2022, there was a notable improvement in the ROE, shifting from negative to positive values. This turnaround continued through December 2024, where the ROE reached 2.15%. The positive ROE values indicate that the company started to generate better returns on the shareholders' equity, which could be a result of enhanced profitability or more efficient management of assets and liabilities.
Despite the positive shift in recent periods, it is essential for Bill Com Holdings Inc to sustain this improvement in ROE to demonstrate consistent profitability and ensure long-term value creation for its shareholders. Monitoring ROE trends going forward will be crucial to assess the company's financial performance and management effectiveness.
Peer comparison
Dec 31, 2024