ANZ New Zealand

The ANZ website contains the following categories:

The category contains the following sections:

    Calculators

    The debtor ageing ratio indicates the average time it takes your business to collect its debts. It's worth looking at this ratio over a number of financial years to monitor performance trends.

    Use information from your annual profit and loss statement along with the trade debtors figure from your balance sheet for that financial year to calculate this ratio.

    For information on using this calculator see below.
    Calculator Debtor Ageing Ratio (in days)
    A red star Field required indicates a mandatory field.
    reset calculate

    A ratio that is lengthening can be the result of some debtors slowing down in their payments. Economic factors, such as a recession, can also influence the ratio. Tightening your business' credit control procedures may be required in these circumstances.

    The debtor ageing ratio has a strong impact on business operations particularly working capital. Maintaining a running total of your debtors by ageing (eg. current, 30 days, 60 days, 90 days) is a good idea, not just in terms of making sure you are getting paid for the work or goods you are supplying but also in managing your working capital.

    The calculation used to obtain the ratio is:

    Debtor Ageing Ratio (in days) =  

    (Trade debtors / Sales) * 365

    		  
    top

    Disclaimer

    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.