Video Games

Payment Behaviour Analysis: Video games Sector

An exhaustive analysis of payment behaviour within the Video games sector reveals a highly efficient and fiscally responsible ecosystem. Based on a sample of 17 companies, the data indicates a strong cultural inclination towards prompt debt settlement. The central tendency metrics are particularly robust: the average payment time stands at 24.6 days, whilst the median is even tighter at 22 days. This narrow gap between the mean and median suggests a normal distribution with minimal skew, reinforcing the reliability of cash flow forecasts for suppliers engaging with this sector. Furthermore, the standard deviation of 8.8 days is relatively low, indicating consistent performance across the sample. It is evident that the finance functions within these organisations are well-organised, prioritising supplier relationships and maintaining liquidity levels that allow for swift reimbursement.

The distribution analysis further underscores the sector's favourable payment profile. A remarkable 70.6% of the analysed companies (12 entities) fall within the 'Fast' category, settling invoices between 0 and 30 days. The remaining 29.4% are categorised as 'Moderate' (31-45 days), and crucially, there are zero companies recorded in the slow (46-60 days) or critical (90+ days) bands. This total absence of severe delinquency is rare in the current economic climate and reflects a sector with substantial working capital discipline. The quartile analysis supports this view; with the 25th percentile at 18 days and the 75th percentile at 33 days, the interquartile range is a mere 15 days. This consistency allows suppliers to realise their revenue with a high degree of certainty, minimising the administrative burden of chasing aged debt.

When examining the specific invoice performance breakdown, the sector continues to demonstrate excellence. Nearly 78% of all invoices are paid within 30 days, whilst only a negligible 4.4% extend beyond 60 days. However, it is worth noting that 15.3% of payments are classified as 'late'. Given the swift average payment times, this statistic likely suggests that many of these companies operate on very short agreed terms (perhaps 7 or 14 days) which are occasionally missed due to administrative friction rather than liquidity distress. Amongst the sample, there are five top performers settling accounts in fewer than 20 days, with the fastest payer achieving an impressive 7-day turnaround. Even the slowest payer in the dataset settles within 40 days, a figure that would be considered enviable in many other industries.

Finally, the geographical distribution of the sample highlights a significant concentration of activity in the capital. The sector is heavily London-centred, with 13 of the 17 companies (76%) based in the city. The remaining entities are sparsely distributed across the East of England, Yorkshire and The Humber, and the East Midlands. This centralisation in London may be a contributing factor to the sophisticated payment practices observed, as these firms likely have access to centralised treasury talent and advanced financial infrastructure. In summary, the Video games sector represents a low-risk environment for creditors, characterised by rapid turnover, consistent behaviour, and a distinct lack of long-term outstanding debt.