operating cycle

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Operating cycle

The average time between the acquisition of materials or services and the final cash realization from that acquisition.
Copyright © 2012, Campbell R. Harvey. All Rights Reserved.

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.
Farlex Financial Dictionary. © 2012 Farlex, Inc. All Rights Reserved

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.
Wall Street Words: An A to Z Guide to Investment Terms for Today's Investor by David L. Scott. Copyright © 2003 by Houghton Mifflin Company. Published by Houghton Mifflin Company. All rights reserved. All rights reserved.
References in periodicals archive ?
To measure the company ability to pay off invisible credit we may calculate the relation of NLB increased by forecasted operating cash inflows generated by future operating cycles (the forecast of area A on Fig.
In wind speeds, one year is commonly used as a block size, while in engineering vehicles one operating cycle may reasonably be set as a block size.
However, the truth is that they are a keystone in the daily operating cycle of most industrial areas.
The target of this problem is to find the best (un)loading sequence for each bay with minimum operating cycles. To achieve better crane processing efficiency, double cycling is introduced, which permits a quay crane to perform the unloading and loading in one operating cycle.
During the Submarine Extended Operating Cycle (SEOC), Submarine Maintenance Engineering Planning and Procurement (SUBMEPP) forecasts Depot and Intermediate maintenance material six years in advance for Virginia Class Submarines.
Traditionally, ceramic battery vents have been used to vent excess gas from lead acid batteries during operating cycles and prevent flame ingress into the battery.
Better performing companies typically are more efficient in their use of working capital to support operations, as evidenced by their lower cash operating cycles. Most companies strive to manage working capital by reducing inventory (DII) and improving collection of receivables (DSO).
In addition, the agency evaluates its management's buoyant capacity to cope with the tough industry conditions, which also enables it to perform well and be resilient through operating cycles and offsets the bank's feebleness, together with its good asset quality.
* Open, non-contact linear encoders are increasingly used in measurement applications that require higher traversing speeds and operating cycles, as well as lower mechanical backlash and zero frictional force induced by an encoder.
It is imperative to understand that outsourcing managed services is not about exporting jobs or infrastructure(s), its about importing competitiveness and efficiencies to a businessAAEs operating cycles. We envision extending our customers reach by managing almost every element on their communication network(s).
The durability testing for standby engines is broken down into two operating conditions: simulated maintenance cycles and simulated operating cycles. Simulated maintenance cycles consist of 24 half-hour cold-starts.
Next, it is important to identify metrics capable of providing measurable data that would allow for the examination of failures based on operating cycles, failures on demand, and maintenance-induced failures.
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