rahull

What is Operating Cycle?

I was wondering how operating cycle of a Business is Managed.
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dylanx
"The average length of time between when a company purchases items for inventory and when it receives payment for sale of the items. The operating cycle is equal to the average age of inventories plus the average collection period. A long operating cycle tends to reduce profitability by increasing borrowing requirements and interest expense. Also called normal operating cycle. See also cash conversion cycle. "
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tiuw
"Your managing routine would be the normal period essential for a small business to create a basic spend of greenbacks to create goods, offer materials, along with be given immediate payment from customers in exchange for materials. If a corporation can be a sales channel reseller, then your running never-ending cycle doesn't consist of any moment pertaining to generation - it's simply the date back the 1st immediate payment pay out towards the appointment of income invoice on the client. "
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