In 2018 the average working capital cycle of the sampled companies increased to 57.5 days. A breakdown of DWC into its components shows the increase in DIO across five of the eight sampled sectors was compounded by a hastening of supplier payments and slower customer collections.
An increasing number of sectors in New Zealand appear to be faced with structural “funding gaps”, where companies pay their suppliers more quickly than they receive payment from their customers. The structural funding gap appears common in both New Zealand and Australia for companies in the Construction & Engineering and Transport & Distribution sectors.
Welcome to the McGrathNicol New Zealand Working Capital Report 2018. This report profiles the working capital performance of a sample of 133 New Zealand domiciled companies (including 38 listed on the NZX) across the Building Products, Construction & Engineering, Food & Beverage, Leisure, Mining & Resources, Retail, Transport & Distribution and Utilities sectors.
Download full New Zealand Working Capital Report 2018.