Ventilation

Sector Payment Analysis: ventilation

This report serves to analyse the payment behaviour currently exhibited within the ventilation sector, based on a comprehensive dataset of 67 companies. As a senior analyst reviewing these figures, the primary objective is to determine the credit risk profile and liquidity expectations for suppliers trading within this industry. The central tendency metrics reveal a sector that generally operates on standard commercial terms, yet significant variations exist. The average payment time stands at 41.2 days, which is closely aligned with the median of 40 days. This proximity between the mean and median suggests that the dataset is relatively balanced and not heavily skewed by extreme outliers. However, businesses trading with this sector must realise that whilst the average sits at just over one month, the standard deviation of 14.6 days indicates a notable degree of unpredictability regarding exact settlement dates.

A deeper examination of the distribution statistics allows us to categorise the sector's reliability with greater precision. Amongst the companies surveyed, there is a distinct segmentation in payment culture. We observe an almost equal split between companies classified as 'Moderate' payers (31-45 days) and 'Slow' payers (46-60 days), with each cohort representing 31.3% of the sample size. It is promising to note that 26.9% of organisations fall into the 'Fast' category, settling debts within 30 days. Conversely, 10.4% are classified as very slow payers, taking between 61 and 90 days to settle accounts. Crucially, the data shows that zero companies fell into the critical 90+ days bracket. This indicates that whilst delays are a genuine operational reality, indefinite non-payment or extreme delinquency is not currently a systemic issue within this specific sample of the ventilation sector.

When we analyse the performance breakdown and quartile data, the disparity in payment practices becomes even more apparent. The interquartile range of 22 days—spanning from the 25th percentile at 30 days to the 75th percentile at 52 days—suggests that credit terms are highly variable. Although 44.8% of invoices are paid within the standard 30-day window, suppliers must organise their cash flow forecasts cautiously, as 20.7% of payments are officially classified as late. The extremes of the dataset further illustrate this volatility: the fastest payer settled accounts in a mere 7 days, whilst the slowest took 72 days. Consequently, suppliers effectively acting as creditors must maintain robust credit control procedures to ensure they are prioritised for payment, rather than falling into the 'slow' category which accounts for nearly a third of the sector.

Finally, the geographic distribution of the sample heavily favours the south of the United Kingdom, with London acting as the primary commercial centre (represented by 19 companies), followed by the South East (10 companies). Representation extends to the East Midlands and Yorkshire and The Humber, though the concentration in the capital may influence the overall payment culture metrics. In summary, whilst the ventilation sector does not present critical solvency risks based on this data, the prevalence of payments extending beyond 45 days suggests that suppliers should favour shorter payment terms where possible. It is essential to recognise that whilst a 41-day average is manageable, the risk of cash flow stagnation remains for those who do not actively manage their ledgers.