operating cycle


Also found in: Encyclopedia.

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 ?
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.
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.
These short, labor-intensive availabilities are assigned to accomplish work that is required to sustain the material condition of the ship between overhauls, particularly those ships on extended operating cycles.
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.
The engine features a variable compression ratio system and uses a two-stroke operating cycle with direct fuel injection and a monoblock construction.
The combination of a vacuum tray dryer and pressure nutsch, integrated in an isolator allows liquid products to be prefiltered prior to the actual drying process for an optimized operating cycle.
These are positive signals for developers, and suggest that development pipeline growth may extend further into the decade even as they remain cognizant that projects announced today won't open until late in the operating cycle, said Ford.
The engine utilizes a high-pressure, common-rail fuel system, along with a regenerative particulate filter that should last upwards of 150,000 miles, depending on the operating cycle, before the ash would have to be flushed out of the system.
Full browser ?