Listed companies put off paying the bill, D&B says 25 Jan 2012
- Kiwi bus maker, director Allott embroiled in US fraud case Business
- Sky TV, Vodafone play down competitive threat Business
- NZ residential building consents decline 0.9% in May Business
- Pushpay seeks at least US$30 mln through investment bank Business
- Kathmandu raises annual profit forecast; shares jump 16% Business
- New fee regime will help Overseas Investment Office News
- Fonterra announces lower Australian farmgate milk price Business
- Z Energy affirms savings forecast from Caltex tie-up Business
- Financial advisers have lifted their game Business
- While you were sleeping: Stocks, oil rally 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.
26 Jun 2016 Opinion
Opinion - Alastair Thompson A democratic path forward to mandate a proper plan for #Brexit - a proposal. By Alastair ... more
24 Jun 2016 Business News
Article - BusinessDesk NZ stocks turn as UK referendum result keeps investors guessing By Paul McBeth June 24 (BusinessDesk) - New... more
27 Jun 2016 Arts
** WIN one of two copies of the novel - visit our Competitions page for more details ** JEAN BATTEN was born in New Zealand in 1909,... more
27 Jun 2016 Entertainment
Pioneers of New Zealand's electronica scene, Pitch Black are celebrating the impending anniversary of their inaugural... more
16 May 2016 Property
By Jonathan Underhill May 16 (BusinessDesk) - Kiwi Property Group, the country's biggest listed property investor by market value,... more
30 Mar 2016 Migration
British High Commissioner Jonathan Sinclair is defending changes to skilled migrant rules for Britain but suggests they won't affect... more
3 Jun 2016 Travel & Tourism
New Zealand Government Rt Hon John Key Prime MinisterMinister of Tourism 3 June 2016 More funding for the New Zealand... more
16 May 2016 NZ Tourism
Article - BusinessDesk Monday 16 May 2016 12:20 PM Jucy plans to expand pod-style hotel chain to Australia in 2017 By Fiona... more
26 Jun 2016 Rugby
14 Jun 2016 Opinion
Column - Gordon Campbell Gordon Campbell on our paltry refugee response and a brazen US rewrite of the TPP First published at... more
23 Jun 2016 Appointments
New Zealand Government Hon Murray McCully Minister of Foreign Affairs 23 June 2016 Media Statement New Ambassador to Belgium... more
10 Mar 2016 Recruitment
New Zealand Government Hon Michael Woodhouse Minister for Workplace Relations and Safety 10 March 2016 Zero-hour contracts gone, PPL... more