Water and Air Management

Payment Behaviour Analysis: water and air management Sector

An in-depth analysis of payment behaviour within the water and air management sector, based on a sample of 17 companies, reveals a remarkably stable and consistent payment culture. The central tendency metrics indicate a highly balanced approach to settling liabilities, with an average payment time of 32.7 days and a median of 33 days. The alignment of these two figures suggests a symmetrical distribution, free from the skew often caused by erratic outliers. Furthermore, the standard deviation is a relatively low 9.6 days, indicating that payment practices are standardised across the sector. Whilst the sample size is modest, the data unequivocally suggests that financial controllers in this industry prioritise prompt settlement, keeping the vast majority of payments centred firmly around standard commercial terms.

When we organise the data by distribution bands, a distinctive pattern of reliability becomes apparent. The sector demonstrates an equal split between 'Fast' (0–30 days) and 'Moderate' (31–45 days) payers, with each category comprising 47.1% of the sample (8 companies each). Consequently, a striking 94.2% of the analysed entities settle their debts within 45 days. The quartile analysis reinforces this view of predictability; with a 25th percentile of 26 days and a 75th percentile of 39 days, the interquartile range is a tight 13 days. This narrow window implies that suppliers to the water and air management sector can forecast cash flow with a high degree of certainty, as significant deviation from the 30-to-40-day norm is rare amongst these businesses.

In terms of specific transactional performance, the sector displays a highly favourable profile for creditors. Over half of all invoices (56.9%) are cleared within 30 days, whilst only a minor fraction (7.4%) extend beyond the 60-day threshold. Although 15.1% of payments are classified as late, it is crucial to realise that these are likely administrative overlaps rather than signs of distress, as evidenced by the complete absence of companies in the 'Very Slow' (61–90 days) or 'Critical' (90+ days) categories. This suggests that whilst minor administrative delays may occur, systemic liquidity issues are not prevalent. Credit managers should view this sector as low-risk, specialising in steady, if not instantaneous, cash flow.

Finally, an examination of outliers and regional variances highlights the sector's operational discipline. The entire payment range is contained within a 40-day window, with the fastest payer settling in 18 days and the slowest in 58 days. This is particularly notable, as it signifies that even the poorest performers in the dataset still settle accounts within a two-month timeframe. Geographically, the activity is concentrated in the South East and London (8 companies combined), acting as the commercial centre for this sample, though representation extends to Tayside and the West Midlands. Overall, the water and air management sector presents a robust credit profile, characterised by disciplined capital management and honourable payment behaviour.