Roads and Bridges

Sector Payment Analysis: [Sector Name]

Based on the data provided for the 44 companies sampled within the [Sector Name] sector, an analysis of the payment behaviour reveals a generally disciplined and stable financial environment. The central tendency metrics indicate a sector that adheres closely to standard commercial terms, evidenced by an average payment time of 32.9 days and a median of 31 days. This tight alignment between the mean and the median suggests a normal distribution, with the majority of businesses organising their accounts payable processes to mature around the standard 30-day mark. With a standard deviation of 12.3 days, volatility within this dataset is relatively low, implying that suppliers can generally rely on consistent payment schedules without significant deviation.

A detailed examination of the distribution highlights that the sector heavily favours prompt settlement. Amongst the companies analysed, 45.5% are categorised as 'Fast' payers (0-30 days), whilst a further 38.6% fall into the 'Moderate' band (31-45 days). Consequently, over 84% of the sampled entities settle their obligations within a 45-day window. This is corroborated by the quartile analysis, where the 75th percentile sits at 41 days, and the interquartile range is a compact 14 days. Notably, the data reveals zero companies in the 'Critical' (90+ days) category and only two companies in the 'Very Slow' (61-90 days) bracket. This absence of extreme delinquency signals a healthy sector-wide liquidity position where credit risk is managed effectively.

However, whilst company-level classifications are positive, the specific performance breakdown suggests that operational friction still exists. Although 58.1% of volume is paid within 30 days, the data indicates that 21% of payments are classified as late. This suggests that whilst the intent to pay is present, administrative delays or strategic cash flow management may cause slippage beyond agreed terms. The extremes of the dataset further illustrate this variance, ranging from a highly efficient fastest payer at 6 days to a slowest payer at 66 days. Nevertheless, with only 8.5% of payments extending beyond 60 days, the risk of long-term bad debt appears minimal.

Finally, the geographic distribution of the sample must be noted, as it shows a distinct concentration in the South East and London, which combined account for nearly 41% of the businesses analysed. This regional weighting may influence the aggregate figures, potentially reflecting the stronger liquidity often found in these economic hubs. In summary, suppliers trading with the [Sector Name] sector should realise that whilst occasional late payments occur, the overall payment culture is robust. The behaviour centres firmly around a one-month cycle, creating a predictable and low-risk environment for credit controllers.