Pharmacies

Analytical Summary of Payment Behaviour in the Pharmacies Sector

We have analysed the payment behaviour of 27 companies within the Pharmacies sector to establish a clear picture of credit risk and settlement culture. The data reveals a distinct tendency towards moderate payment terms rather than prompt settlement. The central tendency metrics indicate an average payment time of 41.6 days, whilst the median stands slightly lower at 39 days. The close proximity of these two figures suggests that the dataset is not heavily skewed by extreme values, presenting a relatively balanced view of the sector. However, the standard deviation of 16.6 days is significant, implying that whilst there is a general trend, individual company performance varies enough that suppliers cannot take a uniform approach to credit control.

A detailed examination of the distribution patterns demonstrates that the sector does not generally favour the standard 30-day payment window. Only 22.2% of the companies analysed fall into the 'Fast' category (0-30 days). Instead, the data is heavily centred in the 'Moderate' band (31-45 days), which accounts for 48.1% of the sample—nearly half of all firms reviewed. This is further corroborated by the quartile analysis: the 25th percentile sits at 32 days and the 75th percentile at 47 days. With a tight interquartile range of just 15 days, it is evident that the core of the Pharmacies sector operates within a predictable, albeit slightly delayed, payment cycle. Suppliers should, therefore, realise that payment receipts will likely lag a week or two behind standard invoice due dates.

Regarding outliers and performance extremes, the sector displays a controlled risk profile. It is encouraging to note the complete absence of companies in the 'Critical' (90+ days) category, and the 'Very Slow' cohort (61-90 days) represents only 11.1% of the sample. The performance range spans from a highly efficient 11 days to a sluggish 88 days. Whilst no companies exceeded the 90-day threshold, the data shows that 17.1% of invoices are classified as late payments. This statistic suggests that administrative friction or cash flow management strategies are causing delays for nearly one in five invoices, necessitating proactive credit management behaviour from suppliers.

Geographically, the sample is predominantly located in the North West (10 companies) and London (7 companies), with smaller representation amongst the East of England, East Midlands, and South East. Whilst regional economic factors may play a minor role, the consistency of the median and quartile data suggests that sector-specific practices are the primary driver of these payment timelines. In summary, the Pharmacies sector presents a medium-risk profile; it is characterised by a lack of critical defaults but a pervasive culture of stretching terms beyond 30 days. Stakeholders should organise their cash flow forecasts based on a realistic 40-45 day settlement horizon.