Packaging and Printing

Based on a rigorous review of the provided dataset, we have carried out a detailed assessment to analyse the prevailing payment behaviour within the Packaging and printing sector. The study, comprising a sample size of 102 companies, indicates a payment culture that leans significantly towards extended credit terms. The data centres on a median payment time of 52 days, which aligns closely with the mean average of 53.3 days. This close correlation between the mean and median suggests that the slow payment practices are systemic across the sector, rather than being skewed by a handful of extreme outliers. Whilst a standard deviation of 19.6 days points to some variability in how different organisations manage their ledgers, the overarching trend is one of delay. It is crucial for suppliers to realise that engaging with this sector likely necessitates a robust working capital strategy, given that the 25th percentile sits at 40 days; essentially, even the better performers are taking well over a month to settle invoices.

When we organise the data into distribution bands, it becomes evident that the payment dynamics do not favour rapid liquidity. Amongst the 102 companies surveyed, a mere 8 entities (7.8%) managed to pay within the ‘Fast’ bracket of 0-30 days. Furthermore, our analysis reveals that zero companies performed at a ‘top performer’ level of under 20 days. The bulk of the sector is entrenched in the 31-60 day window, with 31.4% falling into the moderate category and 30.4% in the slow category. More concerning is the ‘Very Slow’ to ‘Critical’ tail of the distribution; a combined total of 30.4% of companies take longer than 61 days to pay, with the slowest payer recorded at a staggering 127 days. This distribution profile underscores a challenging environment for the supply chain, where the Interquartile Range of 26 days indicates significant unpredictability in cash flow timing.

As a firm that specialises in credit risk, we note that the performance breakdown paints a stark picture regarding adherence to agreed terms. With 37.1% of all invoices classified as late payments, suppliers face a high probability of overdue debt. The data shows that whilst 31.2% of payments are technically made within 30 days, a larger proportion (36.7%) stretches to between 31 and 60 days, and nearly a third (32.1%) extends beyond 60 days. The 75th percentile metric is particularly telling: 25% of the sector takes longer than 66 days to settle accounts. This high incidence of late payment behaviour suggests that extended terms are often used as a method of cheap financing by buyers in the Packaging and printing sector, forcing suppliers to bear the burden of cash flow gaps.

Finally, regarding the geographical spread, the dataset is heavily weighted towards the south of the country. The South East (19 companies) and London (15 companies) constitute the largest regional clusters, representing a significant portion of the sample. However, representation from Yorkshire and The Humber (13), the North West (12), and the East of England (11) ensures a relatively balanced national picture. Despite these regional variations, the data does not indicate that location acts as a mitigating factor for the slow payment speeds observed. Consequently, any stakeholder looking to operate within this sector must prepare for a median wait time of nearly two months, regardless of where their client is based. We advise strict credit control measures when dealing with this industry to mitigate the risks identified in this summary.