Baked Goods

Analysis of Payment Behaviour in the Baked goods Sector

An analysis of payment behaviour within the Baked goods sector, based on a sample of 26 companies, reveals a financial culture that generally adheres to moderate settlement terms. The data indicates an average payment time of 43.8 days, which is closely aligned with the median of 43 days. This symmetry suggests that the sector possesses a consistent approach to accounts payable, with the arithmetic mean not being heavily skewed by extreme outliers. Geographically, the data covers a diverse range of locations, from Yorkshire and The Humber to London and Wales, indicating that these findings represent a systemic trend across the UK rather than a regional anomaly.

When examining the distribution of payment speeds, it becomes evident that organisations in this sector favour a schedule falling within the 31 to 45-day window, a category representing 42.3% of the analysed companies. However, whilst the median sits comfortably in this moderate range, significant variability exists amongst the surveyed entities. The interquartile range of 25 days highlights this disparity; the 25th percentile stands at a prompt 32 days, whereas the 75th percentile extends to 57 days. Furthermore, although 34.9% of invoices are paid within 30 days, the data shows that the operational centre of gravity for invoice clearance lies in the 31-60 day bracket, which accounts for 40.2% of the volume.

Suppliers and vendors who specialise in serving this sector must realise that despite the absence of critical delays—there are zero companies paying beyond 90 days—late payments remain a tangible issue, affecting 22.8% of transactions. The performance range stretches from a highly efficient 18 days to a sluggish 72 days. Consequently, businesses looking to organise their cash flow forecasts effectively should anticipate a standard settlement period of roughly six weeks. The data suggests that while credit risk regarding total default is low, the sector operates on a relaxed payment cycle that demands robust credit control procedures.