The creditor ageing ratio indicates the average time it
takes for your business to pay its bills.
Use information from your annual
profit and loss statement along with
the trade creditors figure from your balance sheet for that
financial year to calculate this ratio.
For information on using this calculator see below.
This ratio provides an indication
of the average time it takes for your business to pay its bills. It's
worth looking at the figure over a number of financial years
to see if a trend is developing. A lengthening in the ratio
could indicate a problem with working capital, such as
decreasing stock turnover or slower debt collection.
This material is for information purposes only. Its content is intended to be of a general nature, does not take into account your financial situation or goals, and is not a personalised financial adviser service under the Financial Advisers Act 2008. It is recommended you seek advice from a financial adviser which takes into account your individual circumstances before you acquire a financial product. If you wish to consult one of ANZ's financial advisers, please contact us on 0800 269 296.
ANZ will not store the information provided in this calculator.
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