June saw a Record Breaking Result as we lowered our average number of ‘Debtor Day’ to 44 days (the average time it takes for our credit customers to pay us). This is a fantastic result which is the lowest since this metric was first introduced several years ago.
The reason it is important for this number to be as low as possible is because it affects our Working Capital (i.e. Working Capital is simply current assets minus current liabilities.) Reducing our debt reduces our liabilities and we have more money to pay our bills and have a healthy balance sheet. Working Capital is the lifeblood of any company.
Working Capital is critical to CEMEX at a global level to help our credit rating and increase our investment grade.
Ross Catterick, Commercial Administration Manager, commented: “Over the past few months we have trained 131 people in our commercial sales areas to ensure all have the same understanding of Working Capital. To support the training a more visible ‘Aged Debt’ report was developed to help improve cash collection.
To keep improving our results there is much more to do and we need all of your help. Despite the 44 Debtor Days, a staggering £15M was not paid on or before the last working day of June and £11M paid in the first three working days of July. This value has direct impact on Working Capital; we must all focus on late paying customers and ensure they pay to their agreed credit terms.
Accounts Receivable would like to thank everyone who supports the collection process despite challenging commercial conditions. Please continue with the good progress already made so far…….”