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.

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.
References in periodicals archive ?
The length of [T.sup.AR] and [T.sup.AP] in our simplified model is relevant to the length of operating cycle and the payment deferral period respectively.
To extract more extreme loads and model a reliable extreme distribution by restricting the fitting error of GEV, spading sections of each operating cycle were extracted and connected.
It happens due to obvious connections between each of these components lasting in fact in a strict relationship: they all are simultaneously employed in the company operating cycle. Moreover, in light of Goldratt's theory of constrains it is justified to argue that it is incorrect to consider management of OWC separately due to its components even though optimization for each component is connected with one homogenous for entire company goal function.
Knollys told PWE: "The sara Sprint range offers the fastest operating speeds on the market; yet our doors are more reliable, and offer more operating cycles, than traditional industrial doors.
Double cycling reduces the number of operating cycle for each bay individually; new conflicts would exist for later containers.
Cash is the beginning as well as the end of an operating cycle. Thus, cash is converted into inventories, which are then sold and converted into accounts receivable.
The front door is opened and closed via a double acting cylinder and is sequenced with the press operating cycle. The rear door can be opened manually for maintenance purposes.
A typical operating cycle begins by tramming the machine up to the face and putting it into the cutting position.
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.
However, the company's small scale of operations and volatile profit margins, as well as the currency risk for imports and the high operating cycle continue to weaken the ratings.
One of these is better management of the cash operating cycle, which is the net number of days in inventory, accounts receivable, and accounts payable.
The company president of Calvert Cliffs Nuclear Power Plant, Jim Spina, said, 'The safe, successful completion of this refuelling outage will enhance operations and reliability during Calvert Cliffs Unit 2's operating cycle. This success is a tribute to the significant role played by the entire Calvert Cliffs outage team - our Calvert Cliffs employees, shared resources from Constellation Energy's Nine Mile Point Nuclear Station and R E Ginna Nuclear Power Plant in New York, the generation services department in Baltimore and our contractors - in safely and efficiently executing the refuelling outage.'
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