Bill Com Holdings Inc (BILL)

Return on total capital

		Jun 30, 2025	Jun 30, 2024	Jun 30, 2023	Jun 30, 2022	Jun 30, 2021
Earnings before interest and tax (EBIT)	US$ in thousands	30,410	-7,137	-207,714	-321,260	-111,179
Long-term debt	US$ in thousands	—	—	—	—	—
Total stockholders’ equity	US$ in thousands	3,914,040	4,134,200	4,085,970	4,043,690	2,529,590
Return on total capital		0.78%	-0.17%	-5.08%	-7.94%	-4.40%

June 30, 2025 calculation

Return on total capital = EBIT ÷ (Long-term debt + Total stockholders’ equity)
= $30,410K ÷ ($—K + $3,914,040K)
= 0.78%

Based on the provided data, Bill Com Holdings Inc.'s return on total capital (ROTC) exhibits a notable trend over the specified fiscal periods. As of June 30, 2021, the company reported a negative ROTC of -4.40%, indicating that the company was not generating sufficient earnings to cover its total capital base, which includes both debt and equity. This negative figure widened further by June 30, 2022, to -7.94%, suggesting an increasing inefficiency in utilizing its total capital to produce net income or potentially declining operational performance.

By June 30, 2023, the ROTC remained negative at -5.08%, reflecting a partial improvement from the previous year's decline, yet still signifying that the company continued to operate at a loss relative to its total capital. The trend demonstrates some stabilization as the ROTC approaches closer to zero, which could imply efforts towards operational recovery or improved capital management strategies.

A significant positive shift is observed in the subsequent period ending June 30, 2024, where the ROTC markedly improves to -0.17%, approaching break-even territory. This suggests that the company's earnings are nearly sufficient to cover its total capital, marking a potential turning point towards improved profitability and efficiency in leveraging its capital resources.

The most notable change occurs by June 30, 2025, when the ROTC turns positive at 0.78%. This indicates that Bill Com Holdings Inc. is now generating a return on its total capital exceeding its cost, reflecting a transition towards profitable operations and effective capital utilization. This improvement could be attributed to better operational performance, cost management, or enhanced revenue generation.

Overall, the trend from negative to positive ROTC over these years indicates a significant turnaround in the company's financial efficiency and profitability, moving from operational losses relative to total capital toward a period of profitability and value creation.