Bill Com Holdings Inc (BILL)

Debt-to-equity ratio

		Jun 30, 2024	Jun 30, 2023	Jun 30, 2022	Jun 30, 2021	Jun 30, 2020
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
Debt-to-equity ratio		0.22	0.42	0.42	0.39	0.00

June 30, 2024 calculation

Debt-to-equity ratio = Long-term debt ÷ Total stockholders’ equity
= $914,000K ÷ $4,134,200K
= 0.22

The debt-to-equity ratio for Bill Com Holdings Inc has shown a steady increase over the past years. Starting at 0.00 as of June 30, 2020, the ratio has gradually risen to 0.39 by June 30, 2021, and further increased to 0.42 by June 30, 2022 and remained the same at 0.42 in the following year. However, there was a notable decrease to 0.22 by June 30, 2024.

The upward trend in the debt-to-equity ratio up to 0.42 in 2022 could indicate that the company has been relying more on debt to finance its operations compared to equity. This may raise concerns about the company's financial leverage and ability to repay its debt obligations.

On the other hand, the decrease in the ratio to 0.22 in 2024 suggests a potential improvement in the company's financial position, as it indicates a lower reliance on debt compared to equity. This could signal a more conservative approach to financing, which is generally seen as positive by investors and creditors.

Overall, it is important for stakeholders to closely monitor Bill Com Holdings Inc's debt-to-equity ratio and assess the company's ability to manage its debt levels efficiently while maintaining a healthy balance between debt and equity in its capital structure.