Health and Safety

Based on the comprehensive dataset provided for the Health and safety sector, I have conducted a detailed review of the payment practices exhibited by the 32 companies within the sample. The analysis aims to characterise the financial health and settlement culture of the industry, highlighting risks and opportunities for suppliers and creditors.

The central tendency metrics paint a picture of a sector that is generally stable, yet prone to significant inconsistency. The average payment time stands at 36.4 days, whilst the median is slightly lower at 32 days. This variance between the mean and the median indicates that the data is positively skewed; a minority of slower payers are dragging the average upwards, masking the fact that many firms settle their debts more rapidly. It is important to realise that whilst the sector does not currently exhibit critical distress signals—evidenced by the complete absence of companies paying beyond 90 days—the standard deviation of 17.8 days points to a somewhat volatile cash flow environment. Consequently, stakeholders must analyse each debtor individually rather than relying solely on the sector average, as payment behaviour varies considerably across the sample.

When we organise the data by payment speed distribution, a distinct polarisation becomes apparent. The sector appears to be bifurcated into two primary groups: those that specialise in prompt settlement and those that delay payments significantly. Half of the companies (50.0%) fall into the 'Fast' category, paying within 30 days, with the fastest payer settling invoices in just 8 days. In contrast, a substantial cohort (31.3%) resides in the 'Slow' category (46-60 days), with very few companies (9.4%) occupying the 'Moderate' middle ground. This 'barbell' distribution suggests that companies in this sector either possess highly efficient accounts payable processes or deliberately leverage trade credit to manage working capital. The interquartile range of 31 days further reinforces this divergence; whilst the top 25% of performers pay within 24 days, the bottom quartile pushes terms out to 55 days or more. Amongst the companies reviewed, this inconsistency is the single largest risk factor.

Finally, an examination of performance breakdowns and regional data provides context for credit risk strategies. Geographically, the dataset heavily favours the South East and London, which account for 50% of the sample. In terms of payment discipline, whilst 52.7% of payments are made within 30 days, a concerning 24.7% are classified as late. This high incidence of lateness—despite the lack of 'critical' 90+ day delays—suggests that administrative friction or cash preservation tactics are common. Suppliers should favour strict credit control measures when dealing with the 14.2% of the sector that consistently pays over 60 days. The slowest payer in the group settles at 63 days; whilst this is not catastrophic, it highlights the need for creditors to maintain vigilance. Ultimately, the data suggests a low insolvency risk but a high probability of cash flow interruption for suppliers who fail to manage their receivables proactively.