Furnmart pretax profits double but...

Credit ratios represent the ability of consumers to repay their debts to companies and a decline in credit ratios represents a decline in the ability of customers to repay hire purchase instalments to retailers such as Furnmart.

The group’s recently released half-year results to July 2024 showed an increase in the value of trade receivables which represents the amount of money owed to the company from the sale of its stock on credit. The higher trade receivables came with higher expected credit losses, the financials show.