Bill Com Holdings Inc (BILL)
Return on total capital
| Jun 30, 2024 | Jun 30, 2023 | Jun 30, 2022 | Jun 30, 2021 | Jun 30, 2020 | ||
|---|---|---|---|---|---|---|
| Earnings before interest and tax (EBIT) | US$ in thousands | -174,164 | -207,714 | -321,260 | -111,179 | -30,809 |
| Long-term debt | US$ in thousands | 914,000 | 1,704,780 | 1,697,980 | 989,381 | — |
| Total stockholders’ equity | US$ in thousands | 4,134,200 | 4,085,970 | 4,043,690 | 2,529,590 | 710,719 |
| Return on total capital | -3.45% | -3.59% | -5.60% | -3.16% | -4.33% |
June 30, 2024 calculation
Return on total capital = EBIT ÷ (Long-term debt + Total stockholders’ equity)
= $-174,164K ÷ ($914,000K + $4,134,200K)
= -3.45%
Based on the provided data, Bill Com Holdings Inc has experienced negative return on total capital over the past five years. The return on total capital was -4.33% as of June 30, 2020, deteriorated slightly to -3.16% by June 30, 2021, and further decreased to -5.60% by June 30, 2022. However, there was a slight improvement in the return on total capital to -3.59% on June 30, 2023, and continued to improve marginally to -3.45% by June 30, 2024.
The negative return on total capital indicates that the company's earnings generated from its total capital employed have been insufficient to cover its costs or that the company has been operating at a loss. It suggests potential inefficiencies in how the company is utilizing its capital resources to generate profits. Bill Com Holdings Inc may need to reassess its capital allocation strategies, cost management, or revenue-generation activities to improve its return on total capital and enhance overall financial performance.
Peer comparison
Jun 30, 2024