The average time between purchasing or acquiring inventory and receiving cash proceeds from its sale.
"A series of transactions that includes purchases of merchandise inventory for cash or on credit, payment for purchases made on credit, sales of merchandise inventory for cash or on credit, and collection of cash from the sales."
Period of time between the acquisition of goods and services involved in the manufacturing process and the final cash realization resulting from sales and subsequent collections.
The average time it takes for a retailer's or manufacturer's inventory to turn to cash. If a manufacturer turns its inventory six times per year (every two months) and allows customers to pay in 30 days, its operating cycle is approximately three months. To Top
The average time between the acquisition of materials or services and the final cash realization from that acquisition.
The frequency with which lamps are cycled on and off.
The average time period from the purchase of merchandise to this sale and conversion back into cash.
The operating cycle, or working capital cycle, is calculated by deducting creditor days from stock days plus debtor days. It represents the period of time which elapses between the point at which cash begins to be expended on the production of a product and the collection of cash from the customer.
The time it takes to sell a product and collect cash from the sale. An operating cycle can last from several weeks to a number of years.
The average time intervening between the acquisition of materials or services and the final cash realization from those acquisitions.
The three primary activities of a company are purchasing, producing, and selling a product. The operating cycle is calculated by adding the inventory conversion period to the receivables conversion period.