Homecare (domiciliary Care)

Sector Payment Analysis: Homecare (domiciliary care)

Upon reviewing the financial data for the Homecare (domiciliary care) sector, based on a sample of 25 companies, one can observe a generally positive trend in settlement discipline. The analysis reveals that the average payment time stands at 29.6 days, closely followed by a median of 27 days. This proximity between the mean and the median suggests that the central tendency of the data is relatively stable, indicating that the majority of businesses within this sector organise their cash flow effectively to meet obligations within a standard 30-day term. The payment behaviour displayed is encouraging, as it demonstrates that typical market participants do not favour delaying remittances significantly beyond standard commercial terms. Indeed, with 71.1% of payments occurring within 30 days, the sector exhibits a strong culture of prompt settlement.

A deeper examination of the distribution highlights a distinct inclination towards efficiency. Specifically, 68.0% of the analysed companies fall within the 'Fast' category (0-30 days), whilst only a single company (4.0%) sits within the 'Very Slow' bracket (61-90 days). The interquartile range—spanning from 19 to 34 days—further reinforces the consistency of this sector, showing that the middle 50% of companies operate within a tight 15-day window. Notably, the sector boasts seven top performers settling accounts in under 20 days, with the fastest payer clearing invoices in just 8 days. However, stakeholders must realise that despite the high percentage of companies paying quickly, the upper quartile data indicates that 25% of the sector still operates with payment timelines extending beyond 34 days, requiring suppliers to manage their working capital accordingly.

When we analyse the specific performance breakdown and risk factors, the data suggests that whilst volume is high, timeliness remains a metric requiring careful monitoring. Although the vast majority of invoices are cleared within the first month, the late payment rate stands at 22.7%. This figure is significant; it indicates that nearly a quarter of transactions miss their due dates, suggesting administrative friction or cash flow prioritisation issues even amongst generally healthy firms. The standard deviation of 15.1 days points to a moderate level of volatility around the mean. While the slowest payer took 70 days to settle, it is a positive sign that zero companies fell into the critical 90+ day category, implying that whilst delays do occur, they rarely spiral into severe delinquency or bad debt territory.

Geographically, the sample is weighted towards the South East and London, which may influence the liquidity profiles observed due to the economic density of these regions. Ultimately, the Homecare (domiciliary care) sector presents a low-to-moderate risk profile. Suppliers engaging with this sector should expect payment times to centre around the one-month mark, which is a healthy standard in the current economic climate. However, credit controllers should remain vigilant regarding the 12.0% of companies in the 'Slow' (46-60 days) category. By understanding this behaviour, suppliers can better forecast their inflows, knowing that whilst the sector is reliable, a minority of transactions may drift towards the two-month threshold.