Advertising

Operating cycle

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

• Abbreviated OC. The amount of time that elapses from the point at which the firm begins to build inventory to the point at which cash is collected from sale of the resulting finished product. The recurring transition of a firm's working capital from cash to inventories to receivables and back to cash.

 
 Embedded terms in definition
 Average
Capital
Cash
Firm
Inventories
Inventory
Point
Receivables
Sale
Time
Working capital
 
 Related Terms
 

<< Operating change restrictions Operating expenses >>

Managing Your Expenses on a Fixed or Reduced Income: Once you've retired, you finally have the opportunity to work at your dream job - keeping yourself happy. It's your chance to visit places you've always wanted to see, take up a new hobby and spend more time with your family and friends. But to be successful at this new position, you've got to make the most of your income and investments. Here are suggestions. More...

Don't let the fear of the time it will take to accomplish something stand in the way of your doing it. The time will pass anyway; we might just as well put that passing time to the best possible use. - Earl Nightingale

Advertising



Copyright 2009-2018 GVC. All rights reserved.