Sports Equipment and Apparel

Payment Behaviour Analysis: Sports equipment and apparel Sector

This report seeks to analyse the current payment behaviour within the Sports equipment and apparel sector, based on a sample of 14 companies operating across the United Kingdom. Upon review of the central tendency metrics, the sector demonstrates a moderate-to-slow payment culture that warrants careful attention from creditors. The average payment time stands at 45.9 days, closely aligning with the median of 44 days. This proximity between the mean and median suggests a relatively symmetrical distribution without extreme skewing by outliers, yet the standard deviation of 15.6 days indicates that consistency remains an issue. Creditors extending terms to businesses in this sector must realise that a wait of approximately one and a half months is the standard operating procedure, rather than the exception.

When examining the distribution logic, it becomes evident that the centre of gravity for this sector lies within the 'Moderate' band (31–45 days), representing 42.9% of the analysed companies. However, whilst nearly half the sector operates within this manageable window, a concerning polarization exists. Specifically, 28.6% of companies fall into the 'Very Slow' category (61–90 days), significantly outweighing the 'Fast' payers (0–30 days), who comprise only 14.3% of the sample. Furthermore, the performance breakdown highlights that 40% of all invoices are classified as late payments. This statistic suggests that delays are systemic rather than sporadic, indicating that administrative sluggishness or cash flow preservation strategies are prevalent amongst these organisations.

A deeper quartiles analysis reveals significant volatility that could impact a supplier's liquidity. The interquartile range (IQR) of 28 days—stretching from the 25th percentile at 35 days to the 75th percentile at 63 days—illustrates a wide disparity in performance. Suppliers cannot easily predict whether they will be paid in just over a month or if they will be waiting more than two months. Whilst it is positive that there are zero companies in the 'Critical' (90+ days) category, the slowest payer recorded a time of 68 days. Conversely, the fastest payer settled accounts in 17 days, proving that efficient payment cycles are possible within the sector, though evidently not the norm.

From a geographic perspective, the sample is distributed across the UK with a slight concentration in the South West, though the sample size is too limited to draw definitive regional conclusions. Ultimately, businesses supplying the Sports equipment and apparel sector should organise their credit control processes to accommodate a 45-day baseline. To minimise risk, suppliers should focus on the 26.8% of invoices paid over 60 days. Given that 40% of payments are late, strict credit terms and proactive chasing strategies are essential. Those who specialise in risk management would advise factoring in a buffer for the significant minority of clients who routinely push payment terms toward the three-month mark.