Bill Com Holdings Inc (BILL)

Return on total capital

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
Earnings before interest and tax (EBIT) (ttm) US$ in thousands -79,254 -125,218 -174,167 -193,341 -219,937 -264,726 -295,773 -337,730 -366,695 -330,307 -316,818 -303,297 -234,954 -172,463 -111,179 -50,811 -44,266 -38,239
Long-term debt US$ in thousands 1,678,500 914,822 914,000 1,146,250 1,708,210 1,706,490 1,704,780 1,838,140 1,813,970 1,774,770 1,697,980 609,528 639,501 639,127 989,381 897,871 886,052 —
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
Return on total capital -1.44% -2.54% -3.45% -3.71% -3.89% -4.54% -5.11% -5.68% -6.22% -5.67% -5.52% -6.48% -4.96% -3.63% -3.16% -2.87% -2.51% -5.32%

December 31, 2024 calculation

Return on total capital = EBIT (ttm) ÷ (Long-term debt + Total stockholders’ equity)
= $-79,254K ÷ ($1,678,500K + $3,809,390K)
= -1.44%

The return on total capital for Bill Com Holdings Inc has shown a downward trend over the period from September 30, 2020, to December 31, 2024. The ratio started at -5.32% in September 2020 and reached its lowest point at -6.48% in March 2022 before gradually improving. Despite the fluctuations, the company consistently reported negative returns on total capital, indicating that the business has struggled to generate sufficient earnings relative to the capital invested in its operations. It is important for the company to focus on improving its operational efficiency and profitability to enhance its return on total capital and create more value for its shareholders.