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.
NOTE:
The calculator is provided for illustrative purposes
only and the calculations are based on the accuracy of the
information provided by you. The information about the
calculators and the results of the calculations are necessarily
general and are only intended as a guide.
When deciding on what your business will do, many factors need
to be considered, including your business' situation and
financial position.
ANZ will not store the information provided in this calculator.
top