Non-alcoholic Beverages

This analysis of payment behaviour within the Non-alcoholic beverages sector, based on a sample of 14 companies, reveals a landscape that generally favours prompt settlement, albeit with significant underlying volatility. The data indicates a mean payment time of 35 days, whilst the median sits noticeably lower at 29 days. This divergence suggests that the average is being skewed by a minority of slow-paying entities. Geographically, the dataset is heavily centred on London, which accounts for 50% of the sample, potentially indicating that capital-centric business practices are driving the baseline figures. To fully understand the liquidity risk, one must look beyond the central tendency and analyse the spread of the data.

When examining the distribution, it is evident that the majority of organisations operate efficiently. A significant 64.3% of the companies analysed fall into the 'Fast' category (0–30 days), and the 25th percentile performance is an impressive 18 days. However, the standard deviation of 22.2 days and an interquartile range of 24 days highlight a lack of consistency across the board. Whilst the median company settles accounts in just under a month, the 75th percentile extends to 42 days. This variance implies that whilst suppliers can generally expect payment within standard terms, they must distinguish between the efficient majority and the slower-moving outliers amongst the group.

The risks associated with this sector become clearer when we scrutinise the tail end of the performance metrics. Although nearly 59% of payments are made within 30 days, the data reveals that 21.8% of payments are classified as late, and 12.4% extend beyond 60 days. The disparity between the best and worst performers is stark; the fastest payer settles invoices in a mere 16 days, demonstrating exemplary cash flow management, whereas the slowest payer delays settlement to 96 days. Suppliers must realise that engaging with the bottom tier of this sector—specifically the 7.1% of companies taking over 90 days—poses a critical working capital challenge.

In summary, the Non-alcoholic beverages sector presents a bifurcated profile. On one hand, there is a strong cluster of top performers, with four companies settling in under 20 days. On the other, the presence of extreme outliers necessitates caution. Businesses trading with this sector should organise their credit control procedures to identify potential delays early, particularly when dealing with entities outside the high-performing median. Whilst the aggregate data paints a picture of a sector paying within moderate terms, the substantial standard deviation serves as a warning that payment speed is far from uniform.