Energy Storage

Payment Behaviour Analysis: Energy storage Sector

An extensive analysis of the Energy storage sector, based on a sample of 19 organisations, reveals a distinct trend towards prompt settlement of accounts and robust financial discipline. The payment behaviour within this cohort is characterised by notable stability, evidenced by a central tendency that is highly favourable for suppliers. The average payment time stands at 28.3 days, with a median of 28 days, indicating a normal distribution free from significant skew. Furthermore, the low standard deviation of 7.8 days signifies that variance amongst these companies is minimal. This tight clustering around the mean suggests a standardised approach to accounts payable across the industry, implying that vendors can generally rely on predictable cash flow whilst trading with entities in this sector.

A deeper examination of the distribution metrics highlights a secure environment for creditors. The majority of the sample, comprising 63.2% (12 companies), falls within the 'Fast' category, settling invoices within 0 to 30 days. Meanwhile, 31.6% occupy the 'Moderate' band (31-45 days), and only a single entity (5.3%) was identified in the 'Slow' bracket (46-60 days). Crucially, there are zero instances of critical delays exceeding 60 or 90 days. The interquartile range further corroborates this consistency, spanning a narrow window of 14 days; the 25th percentile sits at 21 days, whilst the 75th percentile reaches only 35 days. Consequently, stakeholders can realise a high degree of confidence, as extreme delays are statistically improbable within this specific market segment.

When analysing the specific performance breakdown, the data indicates that 75% of payments are cleared within the first 30 days. However, it is prudent to observe that despite the generally swift averages, the 'Late Payments' metric stands at 22.7%. This suggests that whilst companies generally organise their finances to pay quickly, strict adherence to specific agreed terms may occasionally lapse, likely due to administrative processing rather than liquidity issues. In terms of outliers, the sector displays a disciplined range; the fastest payer settles in a mere 16 days, whereas the slowest payer takes 46 days—a figure that would be considered average in many other industries. The complete absence of poor performers (those taking over 90 days) underlines the sector's comparative financial health.

Geographically, the sample is heavily weighted towards the capital, with London housing 9 of the 19 companies analysed, representing nearly half of the dataset. The remaining organisations are distributed amongst the South East, North West, South West, and the East of Scotland, suggesting that whilst the commercial centre of gravity remains in London, efficient payment practices are maintained nationwide. In summary, the Energy storage sector demonstrates exemplary payment discipline. The harmonised behaviour across the sample, prioritising sub-30-day settlement, positions this industry as a low-risk partner for supply chains. Vendors can reasonably expect payments to be finalised within a standard commercial month, allowing them to organise their own working capital with greater certainty.