Listed companies put off paying the bill, D&B says 25 Jan 2012
- NZ More Interested in All Whites than All Blacks Sport
- NZ consumers grow more upbeat, may resume spending Business
- Knowles quits as CEO of KiwiBank Business
- NZ migration bolstered by British invasion Migration
- Sludge Report #192: The Naked Budget Columns
- Budget 2010 – Building the Recovery News
- NZ manufacturing activity reaches highest since 04 Business
- NZ dollar hits 22-month high vs euro Business
- Unemployment rate falls from 7.1 to 6 percent Recruitment
- OceanaGold finds new gold deposits at Fraser mine 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.
1 Mar 2017 News
28 Feb 2017 Customs Minister Nicky Wagner is today congratulating Customs on a record number of drug seizures in 2016. “Customs... more
1 Mar 2017 Business News
28 Feb 2017 State Services Minister Paula Bennett has welcomed an agreement with unions which will see the Government’s new pay... more
21 Nov 2016 Lifestyle
Emirates Team New Zealand EMIRATES TEAM NEW ZEALAND CLOSES IN 3rd POSITION THE LOUIS VUITTON AMERICA’S CUP WORLD SERIES
14 Nov 2016 Property
Article - BusinessDesk Monday 14 November 2016 10:28 AM NZ house prices gain 11% in October, driven by sales of higher value homes By... more
11 Nov 2016 Property
Article - BusinessDesk Thursday 10 November 2016 04:04 PM RBNZ sees pressures building in Auckland construction sector By Paul ... more
8 Feb 2017 Migration
7 Feb 2017 Immigration Minister Michael Woodhouse welcomes a report showing the vast majority of employers who take on seasonal... more
6 Feb 2017 NZ Tourism
8 Feb 2017 Does New Zealand celebrate halloween? Is Auckland a dangerous town- these are some of the subjects visitors Google... more
1 Mar 2017 Netball
VALE: Tania Dalton 1971-2017 March 1, 2017 The Netball community is deeply saddened to hear of the passing of Silver Fern... more
11 Nov 2016 Opinion
Column - Gordon Campbell Gordon Campbell on the Gareth Morgan crusade First published on Werewolf more
10 Nov 2016 Opinion
Column - Gordon Campbell Gordon Campbell on the US election outcome more
8 Feb 2017 Appointments
7 Feb 2017 Finance Minister Steven Joyce will appoint current Deputy Reserve Bank Governor Grant Spencer as the Acting Governor of... more
1 Feb 2017 Appointments
30 January 2017 Health Minister Jonathan Coleman has today appointed temporary Chairs to the boards of Canterbury and South... more
1 Mar 2017 Recruitment
28 Feb 2017 Tertiary Education, Skills and Employment Minister Paul Goldsmith and Associate Education Minister Louise Upston have... more