Furnishings and Fixtures

Based on the comprehensive data provided, here is the analytical summary of payment behaviour within the furnishings and fixtures sector.

Payment Behaviour and Central Tendency An analysis of the furnishings and fixtures sector, comprising a sample of 65 companies, reveals a payment culture that generally adheres to standard commercial terms, though not without notable volatility. The central tendency of the data indicates an average payment time of 41.7 days, closely aligned with the median of 40 days. This proximity suggests a relatively balanced distribution; however, the standard deviation of 18 days highlights that payment consistency varies significantly amongst different entities. Whilst the aggregate figures paint a picture of stability, creditors should realise that a standard deviation of this magnitude implies that relying solely on the average may mask underlying risks. The sector's operations appear heavily centred in northern regions, with Yorkshire and The Humber (10 companies) and the North West (8 companies) representing the largest geographic clusters, suggesting these payment practices reflect broader regional trends rather than a purely London-centric phenomenon.

Distribution and Quartile Analysis A deeper examination of the distribution bands demonstrates that the sector tends to favour moderate payment terms. The bulk of the sample, accounting for 49.2%, settles invoices within the 31-45 day window, whilst 23.1% fall into the ‘Fast’ category of 0-30 days. Consequently, the interquartile range—spanning from 32 to 49 days—captures the core operational rhythm of the sector. However, the data also reveals a distinct divide; whilst nearly three-quarters of the companies manage to organise their cash flow to pay within 45 days, a stubborn minority persists in the slower brackets. Specifically, 16.9% take between 46 and 60 days, and a concerning 9.2% delay payments beyond the two-month mark. This stratification indicates that whilst the majority of the sector is healthy, a significant sub-segment struggles to honour standard terms.

Risk Profile and Extremes When analysing performance regarding deadlines and outliers, the sector exhibits a diverse risk profile. Performance data indicates that 45.5% of payments are made within 30 days, yet the incidence of late payments stands at a substantial 26.9%, a figure that warrants caution for suppliers managing tight cash flows. The disparity in behaviour is most evident when reviewing the outliers: the fastest payer settles in a mere 6 days, whereas the slowest payer extends to a critical 132 days. This extreme range underscores the necessity for suppliers to credit-check individual partners rather than assuming uniform sector behaviour. The presence of one company in the critical 90+ day bracket (1.5%) serves as a reminder that severe delinquency, whilst rare, remains a tangible threat. Stakeholders must recognise that nearly 18% of the sector pays over 60 days, necessitating a tailored approach to credit control to mitigate exposure to these slower payers.