Bill Com Holdings Inc (BILL)

Based on the provided data, Bill Com Holdings Inc's solvency ratios show a mixed trend over the years. The Debt-to-assets ratio has increased steadily from 0.00 in June 30, 2020, to 0.10 in June 30, 2024, indicating the company's increasing reliance on debt to finance its assets.

Similarly, the Debt-to-capital ratio has also shown an upward trend, rising from 0.00 in June 30, 2020, to 0.18 in June 30, 2024. This suggests that a larger portion of the company's capital structure is funded by debt.

The Debt-to-equity ratio has followed a similar pattern, climbing from 0.00 in June 30, 2020, to 0.22 in June 30, 2024. This ratio signifies the proportion of the company's assets that are financed by equity relative to debt.

Lastly, the Financial leverage ratio has exhibited some fluctuations but has overall decreased from 3.38 in June 30, 2020, to 2.22 in June 30, 2024. This ratio helps assess the company's ability to meet its financial obligations and the extent to which it relies on debt financing.

In conclusion, the increasing debt levels indicated by the various solvency ratios reflect a shift in Bill Com Holdings Inc's capital structure towards greater reliance on debt financing, potentially increasing financial risk and impacting the company's overall solvency.

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Coverage ratios

Interest coverage ratio indicates a company's ability to meet its interest obligations on outstanding debt. A higher ratio is generally preferred as it suggests a company has more earnings to cover its interest expenses.

For Bill Com Holdings Inc, the interest coverage ratio has shown a declining trend over the years. In June 2020, the interest coverage ratio was -134.54, indicating that the company's earnings were insufficient to cover its interest payments. The ratio improved slightly to -3.95 in June 2021, but it remained negative, implying continued financial strain.

In the subsequent years, although there was further improvement in the interest coverage ratio, with values of -34.11 in June 2022, -13.66 in June 2023, and -9.08 in June 2024, the company still struggled to generate enough earnings to comfortably meet its interest expenses.

Overall, the data suggests that Bill Com Holdings Inc has had challenges in generating earnings to cover its interest obligations, indicating potential financial risk and the need for improved profitability or a restructuring of its debt obligations.