Listed companies put off paying the bill, D&B says   25 Jan 2012

Hannah Lynch

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.

(BusinessDesk)

Add a comment

Bookmark and Share

News

Historic move of New Zealand’s iconic documents

25 Apr 2017 News
24 AprilThree of New Zealand’s most precious constitutional documents were moved to a new location in a unique ceremonial... more

PM announces changes to ministerial portfolios

25 Apr 2017 Arts
24 April 2017Prime Minister Bill English today announced the appointment of Gerry Brownlee as Minister of Foreign Affairs, Nathan Guy... more

Business

McCully to Viet Nam to further Vietnamese partnership

25 Apr 2017 Business News
23 April 2017 Foreign Minister Murray McCully will travel to Ha Noi today to meet Vietnamese Deputy Prime Minister and Foreign... more

Positive step forward for pay equity

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

Living

Spirit of “Mateship” prominent at London ANZAC commemorations

25 Apr 2017 ANZAC By Charlotte Everett
All photos copyright Peter Livingstone Photography. Lead image: HRH The Duke of York (far right), with the Hon Alexander Downer (far... more

3rd Position, Louis Vuitton America’s Cup World Series

21 Nov 2016 Lifestyle
Emirates Team New Zealand EMIRATES TEAM NEW ZEALAND CLOSES IN 3rd POSITION THE LOUIS VUITTON AMERICA’S CUP WORLD SERIES more

Property

NZ house prices gain 11% in October

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

RBNZ sees pressures building in Auckland construction sector

11 Nov 2016 Property By Paul McBeth
Article - BusinessDesk Thursday 10 November 2016 04:04 PM RBNZ sees pressures building in Auckland construction sector By Paul ... more

Migration

Suspension of decision making authority

25 Apr 2017 Migration
24 April 2017Immigration Minister Michael Woodhouse is taking steps to improve Immigration New Zealand’s decision making... more

Recognised Seasonal Employers employ more Kiwis

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

Travel

eGate expansion project nears completion

25 Apr 2017 Travel & Tourism
21 April 2017Customs Minister Nicky Wagner today announced 15 new eGates are now fully operational at Auckland Airport arrivals,... more

New Zealand commits to Fiji border security

28 Mar 2017 Travel & Tourism
27 March 2017 Customs Minister Nicky Wagner is welcoming a commitment to help strengthen Fiji’s border security. New Zealand... more

Sport

World Masters Games 2017 commemorates Anzac Day

25 Apr 2017 Sport
25 April 2017An Anzac Day service at Queens Wharf and a star-studded New Zealand versus Australia exhibition basketball match will be... more

NZ Goverment welcomes World Masters Games

25 Apr 2017 Sport
21 April 2017Economic Development Minister Simon Bridges and Sport and Recreation Minister Jonathan Coleman have today welcomed the... more

Columns

Gordon Campbell on the Gareth Morgan crusade

11 Nov 2016 Opinion
Column - Gordon Campbell   Gordon Campbell on the Gareth Morgan crusade First published on Werewolf more

Gordon Campbell on the US election outcome

10 Nov 2016 Opinion
Column - Gordon Campbell   Gordon Campbell on the US election outcome more

Kiwi Success

Spencer to be Acting Governor of Reserve Bank

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

Temporary Chairs appointed to Canterbury and South Canterbury DHB

1 Feb 2017 Appointments
30 January 2017 Health Minister Jonathan Coleman has today appointed temporary Chairs to the boards of Canterbury and South... more

Recruitment

New employment resource for young people

1 Mar 2017 Recruitment
28 Feb 2017 Tertiary Education, Skills and Employment Minister Paul Goldsmith and Associate Education Minister Louise Upston have... more

Record number of people in employment

1 Feb 2017 Recruitment
1 Feb 2017 Tertiary Education, Skills and Employment Minister Paul Goldsmith has welcomed the record number of New Zealanders now in... more

s