Formula
to calculate operating cycle:
Operating
Cycle = age of inventory + collection period.
Operating
cycle definition and explanation:
The
operating cycle is the number of days from cash to
inventory to accounts receivable to cash.
The
operating cycle reveals how long cash is tied up in
receivables and inventory.
A long
operating cycle means that less cash is available to
meet short term obligations.
The Age
of Inventory, Collection
Period, and Operating Cycle ratios are included in
the financial statement ratio analysis spreadsheets
highlighted in the left column, which provide
formulas, definitions, calculation, charts and
explanations of each ratio.
The operating cycle is listed in our efficiency
ratios.
The operating cycle and other ratios are key
to understanding financial statements. Our
ratio calculation spreadsheets reduce time
and effort in calculating decision making
ratios. They reduce risk for lenders and
investors and enable owners, managers and
consultants to increase productivity and
business profits. These spreadsheets are
bargain priced to provide a huge return
on investment. Click
here for more details. |
Spreadsheets to
calculate ratios (includes formulas, definitions,
explanations and charts):
See list
of ratios , or the financial statement ratio
analysis spreadsheets which are not highlighted in the
left column, to see which other ratios our spreadsheets
calculate, define and explain.
The operating cycle
is included in our
new spreadsheet
which calculates 15 key business ratios, only
$30 USD.
The Operating Cycle ratio
may be included in our
custom 1, 3 or 5 period financial
statement ratio analysis spreadsheet.
Click here
to order excel
accounting spreadsheet to calculate 15 ratios with
formulas, definitions, calculations, charts, and
explanations for each ratio.
Order free 3 ratio
calculator spreadsheet. Current, quick and
debt-to-equity ratios with formulas, calculations,
charts and explanations. Email
us at 3ratios@bizwiz.ca. |