Appliances and Kitchenware

Payment Behaviour Analysis: Appliances and kitchenware Sector

This report aims to analyse the prevailing payment behaviour within the Appliances and kitchenware sector, drawing upon data from a sample of 17 companies. The financial culture within this sector appears to settle into a moderate rhythm, extending noticeably beyond standard 30-day terms. The statistical centre of the dataset is best represented by the median payment time of 43 days, which sits slightly higher than the arithmetic mean of 40.1 days. Whilst the fastest payer in the group settles invoices in an impressive 16 days, this level of agility is an outlier. The standard deviation of 13 days indicates a moderate degree of variance, suggesting that credit controllers should not expect uniform performance across the board.

The distribution analysis further clarifies the sector's habits. The largest cohort of companies (41.2%) falls into the 'Moderate' band, settling debts between 31 and 45 days. Amongst the sample, the interquartile range is relatively tight at 14 days (spanning from 33 to 47 days), reinforcing the view that the majority of businesses operate on a six-to-seven-week payment cycle. Suppliers must realise, however, that this consistency does not negate risk. Notably, 41.7% of payments are classified as late. This high incidence of lateness suggests that organising cash flow projections solely based on agreed contract terms may be imprudent, as adherence to due dates is frequently compromised.

Furthermore, the data indicates that the sector does not favour early settlement. Only 39.5% of the total value is paid within 30 days, with the bulk of payments (46.8%) occurring in the 31-60 day window. Whilst it is positive that no companies fall into the critical 90+ day category, 11.8% of the entities are classified as 'Very Slow', taking between 61 and 90 days to pay. The slowest payer recorded takes 65 days to settle accounts. Consequently, vendors specialising in supplying this sector must be prepared to carry receivables for up to two months in certain instances, necessitating robust working capital reserves.

Finally, the geographic footprint of the sample is heavily weighted towards the South East and East of England, accounting for nearly half of the analysed entities. In summary, trading with the Appliances and kitchenware sector carries a moderate liquidity risk. The absence of extreme non-payers (>90 days) provides some security, yet the high probability of late payments and a median term of 43 days requires suppliers to maintain proactive credit control processes.