DIX - tax payment indicates the economic condition
Lithuanian Confederation of Industrialists (LPK) and UAB Creditreform Lietuva have created Lithuanian employers debt index (DIX).
The base of DIX - since the beginning of 2011 by the board of State Social Insurance Fund (SODRA) publicly published unique data about the number of personnel and companies' debt for SODRA.
Practical: The index is based on information about companies' financial liabilities for SODRA coverage. DIX indicates companies' ability to pay taxes.
Important: The fact that the company is indebted for SODRA (it doesn't pay for SODRA, so won't pay for you) is more valuable than the fact that it is indebted for another company. Usually if the company has delayed debts for 30 days for SODRA, it already is indebted not only for suppliers or creditors, but also for the tax inspection. Older than 30 days debts are more interesting in risk evaluation.
Updated daily: According to the standing practice, SODRA announces a new debtors list 2-3 days after 15th day of every month - final term of tax collection. Further - until 15th day of the following month - daily updated information about how the debtor covers its debts.
Inclusive: All business subjects, which pay salaries, are obliged to pay taxes. SODRA daily announces data about its debtors without exclusions. 80% of Lithuanian enterprises were indebted for SODRA for at least one day.
Objective: Publicly available, initial, nohow interpreted information, which everybody can see on www.sodra.lt, is used for index calculation. DIX index methodology is open and available for anyone interested.
Simple: DIX - its total debt of all companies-employers, divided by a number of companies, which have at least one employee. No more conditions and exceptions. Monthly specialized DIX comments and analysis, prepared by Lithuanian Confederation of Industrialists and UAB Creditreform Lietuva, read here: "Comments".
Frequently asked questions
Why employers debt index?Its expression is very simple - it is total sum of euro, which one Lithuanian employer is indebted for SODRA on average (all current employers are calculated).
How DIX is calculated?Sum of debt of companies-employers is divided by a number of companies, which have at least one employee.
Why the debt is divided by a number of employers instead of a number of employees?Employers, not employees have debts for SODRA.
Which debts are calculated?In DIX calculation all employers are taken, i.e. companies, which have at least one person employed. As, especially in former big bankrupting or liquidating companies, there are several employees working, who are dealing with property protection, sale or similar (they are employers) - debts of such companies are also estimated. After the company bankrupts and it remains without employees, the company and its debts are no longer used in the index calculation. If the debt was relatively big, this affects the index accordingly.
From which days data are compared?It only makes sense to compare data from the same day of month. Days from which data are compared are shown below. This is sufficient to determine tendencies.
- 16th day of each month - MIN debt (it is 30 days old debt, as from the 16th day debts of the new, recently passed month are published).
- 19th day of each month - MAX debt (in this day it is published how companies have paid SODRA for new, recently passed month).
- 23rd day of each month - one week after payment term, SODRA has the right to impose compulsory money recovery actions, i.e. the reduction of the company's debt for SODRA after this term may be not the result of its goodwill.