Operating cycle

operating cycle
The average time it takes for a retailer's or manufacturer's inventory to turn to cash.

Operating cycle
The average time intervening between the acquisition of materials or services and the final cash realization from those acquisitions. ...

operating cycle
average time period between buying inventory and receiving cash proceeds from its eventual sale. It is determined by adding the number of days inventory is held and the collection period for accounts receivable.

operating cycle
Operations & Production
process between investment and income from product the cycle of business activity in which cash is used to buy resources that are converted into products or services and then sold for cash ...

Operating Cycle. 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.

Operating Cycle
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.

Operating cycle
The average time between the acquisition of materials or services and the final cash realization from that acquisition.
Operating expenses ...

Operating cycle - Is the average time period between buying inventory and receiving cash proceeds from its eventual sale.

Operating cycle of a business
The operating cycle of a business is the average time a business takes to pay cash for salaries of employees or to pay for merchandise and then to receive cash from customers in exchange for the sale of the services or ...

THE OPERATING CYCLE
Remember that the operating cycle is the length of time it takes to turn cash back into cash. That is, a business starts with cash, buys inventory, sells goods, and eventually collects the sales proceeds in cash.

In net working capital management, it can be thought of as the operating cycle less the accounts payable payment period.

operating cycle The average time between purchasing or acquiring inventory and receiving cash proceeds from its sale. operating expense The day-to-day expenses that a firm must incur (i.e. an office electricity bill).

Current assets: cash + those assets (stock, debtors, prepayments, bank accounts) which the management intend to convert into cash or consume in the normal course of business within one year or within the operating cycle.

Terms used to describe the number of operating cycles in a defined period of time or the length of each specific operating cycle.

Current Assets The assets which are expected to be converted into cash or consumed during the 'Operating Cycle' of a business.

Short-term assets having a life of one year or less, or the normal operating cycle of the company.

Definition: Asset that is not expected to be converted into cash within the normal operating cycle of the business.

Current assets are cash and other assets expected to be converted to cash, sold, or consumed either in a year or in the operating cycle. These assets are continually turned over in the course of a business during normal business activity.

current assets Assets that are either used up or converted to cash during the normal operating cycle of the business, usually one year.
current liabilities Debts of the business that must be paid within the next accounting period.

A balance sheet item that includes obligations which are not going to be paid off within the year or operating cycle, but are not included in the "long term liabilities" category.

If the nature of your business is such that the bulk of expenses and receipts for an operating cycle fall in different years, it may be best to select an accounting period that includes both.

Current Assets: Current assets are those assets of a company that are expected to be converted to cash, sold, or consumed during the normal operating cycle of the business (usually one year).

Current assets are those assets of a company that are reasonably expected to be realized in cash, or sold, or consumed during the normal operating cycle of the company (usually one year).

In general, the time between cash disbursement and cash collection. In net working capital management, it can be thought of as the operating cycle less the accounts payable payment period.
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Personal Finance Glossary ...

The court agreed with the taxpayer that the Bardahl formula has 'little or no value when applied to a mechanical contracting business that lacks a routine operating cycle.

(1) In accounting, cash on hand, accounts receivable, inventories, marketable securities, and other resources that could be converted to cash within one normal operating cycle for the business -- usually less than one year.

Earnings before depreciation minus taxes. Measures the cash generated from operations, not counting capital spending or working capital requirements.
Operating cycle ...

See also: Expense, Capital requirements, Bills, Fixed costs, Fixed cost