Aircraft

Based on the dataset provided, here is the analytical summary of payment behaviour within the Aircraft sector.

Executive Summary and Central Tendency This report presents a detailed analysis of payment behaviour within the Aircraft sector, utilising a sample size of 44 companies. The data reveals a payment culture that is moderately prompt but exhibits significant variance. The average payment time stands at 41.7 days, whilst the median is slightly lower at 37 days. This divergence between the mean and the median suggests a positive skew in the distribution, indicating that a minority of slower-paying entities are dragging the average upward. While the central tendency suggests that suppliers can generally expect settlement within a standard 30 to 45-day window, the standard deviation of 25.5 days is considerable. This high level of volatility implies that payment terms are not standardised across the sector, and credit risk professionals must analyse individual debtors rather than relying solely on sector averages.

Distribution and Quartile Analysis A granular examination of the distribution data highlights a distinct dichotomy in performance. The sector displays a strong favour towards prompt settlement, with the largest cohort—20 companies, representing 45.5% of the sample—settling invoices within the 0-30 day 'Fast' bracket. Indeed, the performance breakdown indicates that 51.9% of invoices are paid within 30 days. However, the interquartile range of 35 days (spanning from 24 to 59 days) reinforces the inconsistency mentioned previously. Whilst the top 25% of companies manage to pay within 24 days, the bottom quartile pushes payment terms out to nearly two months (59 days). This wide gap signifies that whilst half the sector operates efficiently, the other half struggles with liquidity or internal processing delays, creating a challenging environment for suppliers dependent on predictable cash flow.

Risk Factors and Outliers The analysis uncovers significant risk factors associated with the 'long tail' of the distribution. Approximately 19.2% of payments extend beyond 60 days, and notably, 25.5% of all payments are classified as late. The data identifies a 'critical' group comprising 4.5% of the sample (2 companies) taking over 90 days to settle. The disparity between the fastest payer (3 days) and the slowest payer (132 days) is stark, highlighting the need for robust credit control procedures when dealing with the lower quartile of this sector. Geographically, the sample is heavily concentrated in London and the South East (21 companies combined). One must consider whether the higher operational costs associated with these regions are influencing working capital management and contributing to the delays observed amongst the slower payers.

Conclusion In conclusion, whilst the Aircraft sector demonstrates a capability for prompt payment—evidenced by the six top performers paying in under 20 days—suppliers should remain vigilant. The 50th percentile mark of 37 days is a healthy benchmark, yet the presence of a substantial number of companies in the 61-90 day bracket (15.9%) indicates that delays are not uncommon. Businesses trading with this sector should realise that whilst immediate risk is moderate, the high standard deviation warrants a specialised approach to credit terms, potentially incentivising early payment to avoid drifting into the 60-day plus category.