BILLNEUTRAL

Return on Equity (ROE)

0.6%

Higher than 38% of Technology sector peers

Updated 1078h ago

Sector Performance

38th percentile

BILL

0.6%

Sector Median

6.5%

Sector Avg

-1.6%

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Deep Analysis

Bill.com's Return on Equity (ROE) of 0.6% means the company generates only $0.006 in profit for every dollar of shareholder equity — a measure of how efficiently it uses investors' capital.

That figure sits well below the sector median of 6.7%, placing it in the 36th percentile among Technology peers, so the vast majority of comparable companies earn much higher returns on equity. The ROE trend is unavailable on a year-over-year basis (N/A) and shows a quarter-over-quarter change of +0.0%, indicating no movement from the prior period. With a low absolute level and a flat trajectory, the combination suggests limited current earnings power but no immediate deterioration, implying modest investment risk rather than a clear opportunity. This metric supports the overall NEUTRAL verdict because the weak ROE aligns with a cautious view, while the absence of a downward trend prevents it from signaling a sell.

Frequently Asked Questions

What does the Return on Equity (ROE) tell investors about BILL?

ROE measures how effectively management turns equity into profit. Consistently above 15% is typically considered strong. Negative equity distorts this metric.

How is the Return on Equity (ROE) calculated?

Return on Equity (ROE) is calculated as: Net Income / Shareholders' Equity.

How does BILL's Return on Equity (ROE) compare to its sector?

BILL's Return on Equity (ROE) of 0.6% compares to a Technology sector median of 6.5%, placing it in the 38th percentile.

Who are BILL's closest peers by Return on Equity (ROE)?

The closest Technology peers by Return on Equity (ROE) include: LSPD (-9.2%), AMBA (-12.8%), WIX (-13.8%), SMAR (-17.3%), TEAM (-19.1%).

The Formula

Net Income / Shareholders' Equity

Why It Matters

ROE measures how effectively management turns equity into profit. Consistently above 15% is typically considered strong. Negative equity distorts this metric.