Bill Com Holdings Inc (BILL)
Financial leverage ratio
| Jun 30, 2024 | Jun 30, 2023 | Jun 30, 2022 | Jun 30, 2021 | Jun 30, 2020 | ||
|---|---|---|---|---|---|---|
| Total assets | US$ in thousands | 9,178,810 | 9,636,020 | 9,256,030 | 5,969,170 | 2,404,020 |
| Total stockholders’ equity | US$ in thousands | 4,134,200 | 4,085,970 | 4,043,690 | 2,529,590 | 710,719 |
| Financial leverage ratio | 2.22 | 2.36 | 2.29 | 2.36 | 3.38 |
June 30, 2024 calculation
Financial leverage ratio = Total assets ÷ Total stockholders’ equity
= $9,178,810K ÷ $4,134,200K
= 2.22
The financial leverage ratio of Bill Com Holdings Inc has shown a declining trend over the past five years, indicating a more conservative leverage position. The ratio decreased from 3.38 in June 30, 2020, to 2.22 in June 30, 2024. This decrease suggests that the company has reduced its reliance on debt financing relative to its equity as compared to the baseline year. A lower financial leverage ratio signifies less financial risk and potential for financial distress due to lower levels of debt relative to equity. It is essential to continue monitoring this trend to ensure the company maintains a healthy balance between debt and equity in its capital structure.
Peer comparison
Jun 30, 2024