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Operating Cycle
(redirected from Operating Cycles)

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

Operating Cycle
The time between the purchase of an asset and its sale, or the sale of a product made from the asset. Most companies desire short operating cycles because it creates cash flow to cover the company's liabilities. A long operating cycle often necessitates borrowing and thereby reduces profitability.

operating cycle
The average length of time between when a company purchases items for inventory and when it receives payment for sale of the items. A long operating cycle tends to harm profitability by increasing borrowing requirements and interest expense.


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