Furniture

Based on the comprehensive dataset provided, here is the analytical summary for the Furniture sector.

Executive Overview of Payment Behaviour We have conducted a detailed review to analyse the payment behaviour of 65 companies within the Furniture sector. The data indicates that the sector operates with a moderate payment culture, evidenced by a median payment time of 40 days and an arithmetic mean of 41.7 days. The close proximity of the mean to the median suggests a relatively balanced distribution, although the standard deviation of 18 days highlights that payment terms are not entirely uniform across the board. Whilst the fastest payer settled accounts in a remarkable 6 days, the sector is not immune to significant delays, with the slowest recorded payment stretching to 132 days. This variance implies that whilst the core of the sector is stable, suppliers must remain vigilant regarding cash flow forecasting when engaging with new partners in this industry.

Distribution and Quartile Analysis The distribution of payment speeds is heavily centred around the 'Moderate' band (31–45 days), which accounts for nearly half of the sample (32 companies or 49.2%). This clustering is further supported by the quartile analysis, where the interquartile range is calculated at 17 days, falling between a 25th percentile of 32 days and a 75th percentile of 49 days. Consequently, a supplier can reasonably expect the majority of invoices to be settled within this six to seven-week window. However, it is important to realise that the 'Fast' payment category (0–30 days) comprises only 15 companies (23.1%) when looking at average company performance, yet the performance breakdown suggests that 45.5% of actual payments are cleared within 30 days. This discrepancy likely indicates that whilst companies may average 40 days, they prioritise settling smaller or critical invoices much faster.

Risk Factors and Outlier Performance Risk assessment is a critical component of this analysis. Amongst the sample, we identified a concerning segment of 'Slow' to 'Critical' payers. Specifically, 17.7% of the companies averaged payment times exceeding 60 days, with one critical outlier averaging over 90 days. The performance breakdown further reveals that 26.9% of payments are classified as late. This behaviour poses a tangible risk to the supply chain, particularly for smaller vendors lacking robust working capital. The data highlights a distinct polarity; whilst three top performers consistently pay in under 20 days, showcasing exemplary fiscal responsibility, the presence of a 132-day maximum payment time serves as a stark warning. Business analysts must recognise that credit control procedures need to be stringent when dealing with the bottom quartile of this sector.

Regional Concentration and Conclusion Geographically, the sample is distributed across the UK but shows a distinct leaning towards the north, with Yorkshire and The Humber (10 companies) and the North West (8 companies) representing the largest regional clusters. This contrasts with a smaller representation in the South East and East Midlands. In conclusion, whilst the Furniture sector generally displays reliable payment habits centred near the 40-day mark, the existence of significant outliers and a 27% late payment rate necessitates caution. Stakeholders should favour proactive credit management strategies to mitigate the risks associated with the minority of poor performers identified in this dataset.