Ready Meals and Meal Kits

Based on the comprehensive dataset provided, I have analysed the payment behaviour of the Ready meals and meal kits sector. This summary outlines the financial health and settlement culture observed across the sample group.

Executive Summary and Central Tendency We have analysed the payment practices of nine representative companies within the Ready meals and meal kits sector to gauge the prevailing credit culture. The data reveals a remarkably consistent central tendency, with the average payment time standing at 46.9 days and the median at exactly 47 days. This alignment indicates a symmetric distribution of data, suggesting that a settlement period of approximately seven weeks is the standard operating procedure for this industry. Whilst the sample size is modest, the stability of these figures provides a strong baseline for expectations. Geographically, the dataset is centred heavily around London, which accounts for four of the nine entities, though there is representation amongst other regions including Yorkshire and The Humber, Wales, the East Midlands, and the South East.

Distribution and Variability Analysis A deeper examination of the distribution metrics allows us to realise the nuances of risk within this sector. The standard deviation of 15.6 days points to a moderate level of variability; however, the interquartile range (IQR) of 14 days demonstrates that the 'middle 50%' of companies adhere to a tight schedule between 40 and 54 days. In terms of categorisation, the sector does not favour rapid settlement. Only one company (11.1%) falls into the 'Fast' category (0-30 days). The majority of the cohort is split evenly between 'Moderate' (31-45 days) and 'Slow' (46-60 days) payers, comprising 33.3% each. It is notable that whilst 22.2% of the companies are classified as 'Very Slow' (61-90 days), none have drifted into the critical 90+ day bracket, suggesting that companies organise their cash flow sufficiently to avoid extreme delinquency.

Transactional Performance and Risk Profile When viewing the data through the lens of invoice performance, the behaviour of the sector appears less favourable for suppliers requiring prompt liquidity. Only 29.8% of invoices are settled within a standard 30-day window. The bulk of transactional volume (42.2%) is cleared between 31 and 60 days, whilst a significant 27.8% of payments stretch beyond 60 days. Perhaps most concerning is the statistic that 40% of payments are classified as 'late'. This high incidence of tardiness suggests that whilst the median payment time is predictable, adherence to agreed contractual terms is lax. Suppliers looking to specialise in servicing this sector must account for this latency in their working capital forecasts.

Extremes and Operational Range The disparity between the best and worst performers underscores the necessity for specific credit checks amongst potential clients. The most efficient payer in the group settles accounts in just 18 days, representing a highly efficient outliers. In stark contrast, the slowest payer takes 70 days—a gap of nearly two months. This range indicates that whilst the sector average hovers around 47 days, individual company policy dictates actual performance. Consequently, suppliers should not rely solely on the sector average but should instead analyse individual credit histories where possible. Ultimately, the Ready meals and meal kits sector presents a stable but slow payment environment, where extended terms are the norm rather than the exception.