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.
Creditor Ageing Ratio (in days)
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.
The calculation used to obtain the ratio is:
Creditor Ageing Ratio (in days) =
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.