A company's operating cycle, or cash conversion cycle, shows the length of time it takes a company to buy inventory, convert it into sales and collect the "accounts receivable" revenue from the sales.

Operating cycles and cash cycles are measures of how effective a company is at managing its cash. When a company invests in inventory, its cash is tied up until the items in question are sold. As a ...

Operating working capital measures the amount of cash required to finance the components of a company's operating cycle -- the process by which a business buys and sells inventory, pays suppliers and ...