Listed companies put off paying the bill, D&B says 25 Jan 2012
- MARKET CLOSE: NZX 50 rises to record, led by Sky TV on rugby Business
- NZ dollar heads for 0.9% weekly drop Business
- Dorchester closes oversubscribed $30M capital raise Business
- NZX says it doesn't know why shares have declined Business
- Sky TV to launch $20/month subscription ondemand service Business
- Cavalier shares drop 10% after profit warning Business
- Sky TV sees annual profit gain of up to 8.6% in 2015 Business
- Heartland NZ chief risk officer resigns Business
- DNZ revalues portfolio by $10.7 million Business
- DNZ revalues portfolio up by $10.7 million Business
Publicly-listed companies took a week longer than the private sector to pay their bills in the December quarter, the largest disparity between the sectors in four years, according to debt collection agency Dun & Bradstreet.
Payment terms for listed firms average 51 days, two days longer than the September quarter and 5.8 days longer than 12 months ago. Private firms were on par with the national average of 44.6 days, half a day longer than the same quarter last year.
Historically, listed companies have taken longer than private firms to pay their accounts, but the latest spike brings payments terms for listed companies to their highest in ten quarters, after a steady rise over the past two years.
“This is indicative of an inherent mismanagement of cash flow that can be potentially hazardous to their financial health, given that firms on the stock exchange contribute significantly to the New Zealand economy,” John Scott, general manager of Dun & Bradstreet said in a statement.
Larger firms, with 500 or more employees, were the slowest bill payers at 49 days, compared to smaller firms, with fewer than 20 employees, at 43 days, during the December quarter.
“Wherever possible, small businesses pay their bills as soon as they can because they have tighter cash flow cycles,” Scott said. “Large businesses with more generous cash reserves are more able to stem any shot-term cash flow problems and hence are less likely to fail. This is extremely worrying given the long-term implications of not paying on time.”
The slowest paying industries were electric, gas & sanitary service and communications industry, with payment terms of 52.8 days and 52.2 days. Forestry was the fastest paying industry at 39.3 days, down 2.7 days in the past 12 months.
The transportation and public administration sectors recorded no change in payment terms from the last quarter.
Christchurch businesses performed best, with an average payment term of 45.1 days, while firms in Auckland took the longest to settle their bills on 46.3 days.
24 Oct 2014 News
New Zealand First Members of ParliamentSpokespersons roles Rt Hon Winston PetersECONOMIC DEVELOPMENT, FINANCE, FOREIGN AFFAIRS,... more
24 Oct 2014 Business News
By Fiona Rotherham Oct. 24 (BusinessDesk) - Sky Network Television, the country's dominant pay-TV operator, will launch a new $20 a... more
24 Oct 2014 Lifestyle
New Zealand comedians Guy Montgomery (Billy T winner, 7 Days) and Tim Batt (Radio Hauraki, 7 Days) have broken the world record... more
20 Oct 2014 ANZAC
On Thursday 16 October, the NZ-UK Link Foundation held their Inaugural Annual Lecture at the University of London’s Senate... more
15 Oct 2014 Property
The Resource Management Act needs to explicitly recognise the importance of New Zealanders’ access to more affordable housing... more
22 Oct 2014 Migration
A stream of migrants has helped plug some of the gaps in New Zealand's steady employment growth. New data reveals migration numbers... more
30 Sep 2014 Migration
There are thousands of expats living in the UK who are aiming for permanent residency status and, eventually, a British passport. But... more
10 Oct 2014 Travel & Tourism
By Paul McBeth Oct. 10 (BusinessDesk) - New Zealand guest nights were largely flat in August from a month earlier as a gain... more
24 Oct 2014 Cricket
Hamilton’s youngest cricketers will take their talent to the pitch this long weekend for the ANZ One Day International... more
24 Oct 2014 Rugby
By Tina Morrison Oct. 24 (BusinessDesk) - Sky Network Television, New Zealand's dominant pay-TV company, has signed a conditional... more
23 Oct 2014 Opinion
Gordon Campbell on the tokenism of New Zealand‘s role against Islamic State Was John Key born lucky or what? Political... more
16 Oct 2014 Opinion
Gordon Campbell on New Zealand getting involved (again) in other peoples wars Apparently, the Key government is still... more
17 Oct 2014 Appointments
Institute Of Directors Local businessman Brian Corban was made a Distinguished Fellow of the Institute of Directors yesterday, in a... more
13 Oct 2014 Appointments
Article - BusinessDesk Kiwi Income Property reshuffles executive positions By Suze Metherell Oct. 13 (BusinessDesk) - Kiwi... more
24 Oct 2014 Recruitment
The best workplaces have been named - and employees at the winning companies say communication, teamwork and a strong sense of values... more
9 Oct 2014 Recruitment
Te Runanga o Ngati Awa is widening its scope in the hunt for directors for the Whakatane based iwi authority’s commercial arm... more