Operating cycle

ardijan User Posts: 1 Joined: 20/10/2011	#1 11/11/2011 14:01 what is an operating cycle and how we can calculate it? is it the same cycle which is calculated to work out working capital needs?

bechard User Posts: 2 Joined: 14/11/2011	#2 14/11/2011 06:53 The Operating Cycle) is the length of time between a firm's purchase of inventory and the receipt of cash from accounts receivable. It is the time required for a business to turn purchases into cash receipts from customers.

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