Bill Com Holdings Inc (BILL)

Bill Com Holdings Inc exhibits a consistent pattern in its solvency ratios over the period from June 30, 2021, to June 30, 2025. The debt-to-assets ratio, debt-to-capital ratio, and debt-to-equity ratio are uniformly reported at zero across all the years, indicating that the company has not utilized debt financing during this timeframe. Consequently, these ratios suggest that the company's capital structure is entirely equity-based, with no significant debt obligations to leverage.

The financial leverage ratio, however, fluctuates within a relatively narrow range, from a low of 2.22 in 2024 to a high of 2.57 in 2025. Despite the absence of debt, this ratio signifies the company’s degree of financial leverage based on other factors, potentially including non-debt liabilities or accounting adjustments. The consistent zero debt ratios demonstrate a conservative capital structure, implying minimal or no reliance on borrowed funds for financing operational or investment activities.

Overall, the solvency profile of Bill Com Holdings Inc is characterized by an absence of debt-related risks, supported by zero debt ratios, combined with a stable but slightly variable financial leverage ratio. This indicates a low financial risk profile associated with debt financing, though it also reflects the company's reliance on non-leveraged sources of capital.

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Coverage ratios

The interest coverage ratio of Bill Com Holdings Inc. over the specified periods indicates a fluctuating trend, generally reflecting growing challenges in meeting interest obligations relative to earnings before interest and taxes (EBIT).

As of June 30, 2021, the interest coverage ratio was at -3.95, signifying that the company was incurring losses or operating with significantly negative EBIT, which prevented it from covering its interest expenses and likely resulted in a failure to meet interest payments. The situation worsened in the subsequent year, with the ratio declining to -34.11 by June 30, 2022, highlighting a further deterioration in earnings capacity and an increased inability to service interest obligations.

In June 2023, the ratio improved somewhat to -13.66, although it remained negative, indicating that the company continued to operate with insufficient earnings to cover interest expenses, albeit with some improvement over the previous year. The trend continued toward a more favorable position as of June 30, 2024, when the ratio approached a near-zero figure of -0.37, suggesting a significant reduction in the interest coverage deficit but still indicative of earnings remaining insufficient to fully cover interest expenses.

By June 30, 2025, the interest coverage ratio turns positive at 1.64, signaling a potentially sustainable financial position where earnings are sufficient to cover interest expenses. This shift indicates that the company may have achieved improved profitability or reduced interest costs, marking a noteworthy change from previous years of negative coverage.

Overall, the data reveals a trajectory from severe financial distress towards a more stabilized interest coverage position, culminating in a positive ratio in mid-2025, which could reflect a turning point in the company's financial health regarding its ability to service interest obligations.