Business performance is showing improvement in most categories quarter over quarter, while metrics remain negative from a year-over-year perspective, according to Experian’s Q4 Business Benchmark Report.
Days beyond terms (DBT) appears to be stabilizing quarter over quarter, across all business sizes, industry groups and geographic regions. However, DBT remains significantly negative year over year, increasing by as much as 13.8 percent.
The percentage of dollars delinquent has remained relatively flat quarter over quarter, with the exception of larger businesses (those with 250 or more employees) that have shown significant improvements, reducing their debt by as much as 11 percent. Performance in this category varies quarter over quarter by industry sector and geographic region. Year over year, the change in percentage of dollars delinquent varies across all business sizes. Notably, midsize businesses (those with 250 to 499 employees) saw the greatest positive change, improving by 35.9 percent.
Other findings from the Q4 Business Benchmark Report include the following:
- U.S. businesses paid their bills an average of 7.3 days beyond contracted terms in December 2011. This metric remained relatively flat quarter over quarter, showing a 1.6 percent increase. When compared year over year, DBT has seen a 13.8 percent increase.
- Quarter over quarter, all business sizes have remained relatively stable in their payment performance, showing only slight worsening. When compared with the previous year, however, businesses of all sizes showed an increase in DBT, which is consistent across all industries and geographic regions.
- The national average percentage of dollars delinquent and the percentage of dollars considered severely delinquent (more than 91 days past due) have remained relatively stable, increasing by 1.4 percent and 1.7 percent respectively quarter over quarter. Compared with the previous year, both metrics have increased by 7.6 percent and 16.2 percent, respectively.
- Quarter over quarter, the Communications sector showed the greatest decrease in delinquent dollars, improving by 28 percent. When compared with the previous year, the Finance and Utilities sectors showed the greatest decrease in percentage of dollars delinquent, improving by as much as 28.4 percent. Among the largest increases in percentage of dollars delinquent were the Legal Services (20.8 percent) and Real Estate (19.5 percent) sectors.
- Quarter over quarter, the Communications sector showed the greatest decrease in percentage of dollars considered severely delinquent, improving by as much as 34 percent. Year over year, the Utilities sector showed one the greatest decreases in percentage of dollars considered severely delinquent, improving by 29.3 percent. Conversely, Real Estate, Legal Services and Public Services showed the greatest increase in percentage of dollars considered severely delinquent, rising by as much as 36.8 percent year over year.
To download previous reports or to see a visual representation of this data and other information broken down by state in an interactive map, visit http://www.experian.com/business-benchmark-report.