Companies hoarding cash as 2011 accounts payable rises three days

Sageworks
June 22, 2011
Read Time: min

How long are companies taking to pay their suppliers? Sageworks, Inc. just released exclusive YTD averages for Accounts Payable Days in major industries including construction, manufacturing, wholesale trade, retail trade, and real estate. All five of these industries are seeing increasing profits, but they are dragging when it comes to paying suppliers, according to Sageworks’ industry data.

Additional Data & Highlights:

• Excluding real estate, 14 out of 19 major sectors are increasing A/P days despite experiencing sales growth in 2011.
• The manufacturing industry is taking an average of 42.2 days to pay vendors, up 6 days from 2010.
• Across the five industries, all are taking at least 3 additional days to pay their vendors in 2011 versus 2010.

This trend of increasing A/P days for the first half of 2011 indicates that many companies are extremely cautious, a sign of ongoing uncertainty motivating companies to hold onto cash as long as possible.

About the Author

Sageworks

Raleigh, N.C.-based Sageworks, a leading provider of lending, credit risk, and portfolio risk software that enables banks and credit unions to efficiently grow and improve the borrower experience, was founded in 1998. Using its platform, Sageworks analyzed over 11.5 million loans, aggregated the corresponding loan data, and created the largest real-time database of private-company financial information in the United States. The company was acquired in 2018 and is now part of Abrigo.

Full Bio

About Abrigo

Abrigo is a leading technology provider of compliance, credit risk, and lending solutions that community financial institutions use to manage risk and drive growth. Our software automates key processes — from anti-money laundering to fraud detection to lending solutions — empowering our customers by addressing their Enterprise Risk Management needs.

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