Waste Management and Recycling

Sector Payment Analysis: Waste management and recycling

Based on a comprehensive dataset encompassing 99 companies, we have conducted a rigorous assessment to analyse the prevailing payment behaviour within the Waste management and recycling sector. The data indicates a remarkably stable payment culture, characterised by a strong central tendency. The average payment time stands at 34.5 days, closely aligned with the median of 35 days. This proximity between the mean and the median suggests a normal distribution with minimal skew, indicating that payment practices are consistent across the board and are not heavily distorted by extreme outliers. With a standard deviation of 12.7 days, there is a predictable rhythm to cash flow within this industry, allowing suppliers to forecast receipts with a reasonable degree of confidence.

When we organise the data by distribution bands, it becomes evident that the Waste management and recycling sector does not favour long payment terms. The majority of organisations, totalling 82.8% of the sample, settle their accounts within 45 days. Specifically, 40 companies (40.4%) fall into the ‘Fast’ category of 0-30 days, whilst a further 42 companies (42.4%) are situated in the ‘Moderate’ band of 31-45 days. This clustering demonstrates that prompt payment is the norm rather than the exception. Furthermore, the interquartile range—spanning from 26 days (25th percentile) to 41 days (75th percentile)—reinforces this view of reliability. A tight range of just 15 days amongst the middle 50% of companies highlights a sector-wide adherence to standard commercial terms, minimising the volatility often seen in more turbulent markets.

Despite the generally positive outlook, one must realise that delays do exist, although they are contained. Approximately 22.4% of payments are classified as late, yet the severity of these delays is mitigated by the absence of critical failures. Notably, zero companies took longer than 90 days to pay, eliminating the highest risk category entirely. However, there is a disparity between the quickest and slowest payers; whilst the fastest payer settled invoices in a mere 5 days, the slowest took 84 days. Nevertheless, only three companies (3.0%) fell into the ‘Very Slow’ category (61-90 days). The data suggests that whilst outliers exist, the sector’s mechanisms are robust enough to prevent these delays from becoming systemic issues.

Geographically, the dataset is heavily weighted towards the South, with London and the South East accounting for nearly half of the companies analysed (45 total). As we specialise in UK sector trends, it is pertinent to note that this regional concentration may influence the aggregate figures, potentially reflecting the liquidity often found in the capital’s commercial centre. In conclusion, the Waste management and recycling sector displays a disciplined approach to accounts payable. With over 53% of performance breakdown metrics indicating payments within 30 days and a complete absence of critical non-payment beyond 90 days, the sector presents a low-risk profile for creditors. Suppliers engaging with these organisations can generally expect settlement within a standard 35-day window, ensuring healthy working capital cycles.