Books

Sector Payment Analysis: Books

This report analyses the payment behaviour of 23 organisations within the Books sector, providing a detailed overview of credit risk and settlement culture. The data reveals a landscape characterised by significant volatility, as evidenced by a standard deviation of 25.2 days against a mean payment time of 40.3 days. Whilst the median payment time of 38 days suggests that the typical company settles its debts within a reasonable timeframe, the substantial standard deviation indicates that payment practices are far from uniform. Creditors must realise that relying solely on the average may be misleading; the sector effectively operates with a wide disparity between prompt payers and those with critical delays. Consequently, suppliers should organise their cash flow forecasts with a degree of caution when dealing with new partners in this industry.

A granular examination of the distribution shows a split in payment culture. The sector appears to favour moderate terms, with the vast majority of companies (73.9%) falling into the 'Fast' (0–30 days) or 'Moderate' (31–45 days) categories. Specifically, 39.1% of the sample are classified as fast payers. However, the quartile analysis highlights a distinct "middle ground" of performance, with the interquartile range spanning from 27 to 46 days. This suggests that whilst excellence exists—as demonstrated by the top performers settling in under 20 days—a significant portion of the sector operates on standard 30 to 45-day terms. Nevertheless, the 'long tail' of the distribution cannot be ignored; nearly 13% of companies take between 46 and 90 days to pay, presenting a tangible risk to the supply chain.

The performance breakdown offers further insight into the reliability of these companies. It is encouraging to note that 64.5% of obligations are met within 30 days. However, one must analyse the opposing metric: a concerning 30.3% of payments are classified as late. This high percentage of overdue settlements implies that whilst companies may intend to pay within standard terms, administrative friction or liquidity management strategies often delay the actual transfer of funds. The disparity between the fastest payer (9 days) and the slowest payer (136 days) is extreme. Such outliers underline the necessity for robust credit control procedures; a supplier failing to distinguish between a 9-day payer and a 136-day payer could face severe working capital challenges.

Finally, it is important to contextualise these findings within the geographic profile of the sample. The dataset is heavily centred on London, which accounts for 17 of the 23 companies (74%). This London-centric bias may reflect specific metropolitan business practices or higher operational costs that influence working capital management. Only a smattering of representation exists amongst other regions, such as the East of England and the West of Scotland. Therefore, whilst the data provides a strong indicator of sector health, one must recognise that regional variations outside the capital might differ. In summary, the Books sector displays a generally healthy median performance, yet the prevalence of late payments and extreme outliers necessitates constant vigilance.