Music

Based on the comprehensive dataset provided for the Music sector, we can analyse the financial health and operational efficiency regarding payment practices. The sample consists of 17 companies, heavily concentrated in London, which accounts for 12 of the entities reviewed. The data indicates a generally favourable payment culture within the sector, though there are distinct nuances in the distribution of settlement times. The central tendency metrics paint a positive picture: the median payment time stands at a swift 20 days, which is notably faster than the standard 30-day commercial term often cited in UK business contracts. However, the average (mean) payment time is slightly higher at 26.6 days, pulled upward by a minority of slower payers. This discrepancy suggests that whilst the typical company pays very quickly, a few entities are extending their terms, thereby impacting the overall average.

When we scrutinise the distribution of payment speeds, it becomes evident that the sector is dominated by efficient payers. A significant majority—64.7% of the analysed companies—settle their invoices within the 0-30 day 'Fast' bracket. Furthermore, the 25th percentile sits at 18 days, reinforcing the view that prompt payment is a standard behaviour amongst the top performers. Conversely, the 75th percentile extends to 39 days, and the interquartile range of 21 days highlights a moderate degree of inconsistency across the sector. This variance is further evidenced by the standard deviation of 14.1 days. Whilst this deviation is not alarming, it does indicate that suppliers trading with companies in this sector cannot take a uniform approach to cash flow forecasting; they must realise that payment behaviours vary significantly between the top quartile and the bottom quartile.

Despite the strong median performance, the data reveals an underlying issue with schedule adherence. Although 72.4% of invoices are paid within 30 days, the 'late payment' metric stands at a considerable 26.4%. This implies that roughly one in four invoices is settled beyond the agreed terms, even if the absolute delay is not excessive. It is important to note, however, that the sector appears devoid of critical credit risks at present. There are zero companies in the 'Very Slow' (61-90 days) or 'Critical' (90+ days) categories. The slowest payer recorded settles in 59 days, just shy of the two-month mark. This absence of extreme delinquency suggests that whilst administrative delays or working capital management strategies may cause some slippage, there is no systemic evidence of insolvency or severe liquidity distress within the sample group.

Geographically, the analysis is heavily London-centric, which may bias the results towards the working capital practices common in the capital's financial ecosystem. With only single representatives from the East of England, East Midlands, Yorkshire and The Humber, and the North West, it is difficult to draw firm regional conclusions outside of London. However, the overall range—from a highly efficient 5 days to a sluggish 59 days—demonstrates that even within a specific sector, internal accounts payable processes differ widely. In summary, the sector displays robust health with a strong inclination towards early settlement, yet suppliers should remain vigilant regarding the 26.4% of late transactions that occur even amongst otherwise solvent trading partners.