In an exciting new innovation, CreditWorks has recently added Industry Classification coding into its CRISworks reporting. Now when you enquire about a company, you will be able to compare that company’s payment performance (DSO) against the average DSO for the industry the company is in.
It is well known that certain industries take a little longer to pay than others, but these longer times may well be standard for that industry. So, it is important to compare “apples with apples” when considering whether a company’s payment profile is within the norm for the industry they are in, or whether they stand outside the average terms for that industry.
For the past year the Credit Risk Indicator History chart on the Dashboard page in CRISworks has shown the debtor’s DSO history and CRI trend lines for the previous six months. Now the company‘s industry average DSO history has been added, and you can see how the company has and is performing compared to the industry average.
The industry average DSO is shown in the background in the chart:
Debtors are classified using ANZSIC (Australia New Zealand Standard Industrial Classification) codes provided by the Companies Office. These are the classifications that are used by government departments such as MBIE and ACC.
We hope this will help provide some context when referring to a debtor’s payment performance chart, by providing a legitimate comparison to the respective industry averages, that they trade in.
If you have any questions about the Industry Average DSO trend line or if there’s anything else CreditWorks can help you with, please telephone 0508 273 384 (0508 CREDITWORKS), or +64-9-5200626 if you are calling from outside New Zealand.