Care Homes

Based on the comprehensive data provided for the Care homes sector, we have analysed the payment behaviour of a sample size comprising 75 companies. The central tendency metrics indicate a remarkably stable and consistent payment culture within this industry. The average payment time is recorded at 32.7 days, which aligns almost perfectly with the median of 32 days. This close convergence suggests a normal distribution where extreme outliers do not significantly skew the overall picture. With a standard deviation of 10.9 days, the variability in payment practices is relatively contained. This statistical coherence implies that suppliers and creditors can generally realise a settlement period hovering closely around the standard 30-day term, reflecting a disciplined financial environment.

When we examine the distribution bands in greater detail, the sector appears effectively bifurcated between 'Fast' and 'Moderate' payers. Specifically, 45.3% of the analysed companies maintain an average payment speed of 0–30 days, whilst a nearly equal proportion of 44.0% fall into the 31–45 day bracket. Consequently, the vast majority of the sector (over 89%) operates within a tight six-week payment window. The quartile analysis further supports this view; the interquartile range of 19 days—spanning from the 25th percentile at 23 days to the 75th percentile at 42 days—demonstrates a strong grouping around the centre. This data suggests that whilst prompt payment is common, there is a standard practice amongst nearly half the cohort to stretch terms slightly beyond the traditional month-end, likely to optimise working capital.

Despite the generally favourable averages, a deeper review of the performance breakdown is necessary to understand the risk profile. Although 60.7% of payments are cleared within 30 days, the data highlights that 21.4% of payments are classified as late. It is crucial to contextuallise this figure: whilst late payments occur, they rarely devolve into critical delays. Notably, only 7.4% of payments extend beyond 60 days, and there are zero companies in the critical 90+ day category. The slowest payer recorded took 64 days, and the fastest settled in just 13 days. Amongst the top performers, 11 companies specialise in rapid settlement, paying in fewer than 20 days. This absence of extreme delinquency suggests that whilst administrative delays exist, systemic insolvency risk regarding trade credit is currently low.

Finally, regarding the geographic organisation of the dataset, there is a clear concentration of activity in London and the South East, which combined account for 30 of the 75 companies. As we organise future credit strategies for the Care homes sector, it is prudent to view this as a low-to-medium risk environment. The behaviour observed favours a standard commercial cycle, and stakeholders should realise that whilst 30-day terms are the target, a buffer extending to 45 days is the practical reality for a significant portion of this market. Given that only one company falls into the 'Very Slow' (61-90 days) category, the sector demonstrates a resilience that favours reliable cash flow forecasting.