operating cycle

Definition

The average time between purchasing or acquiring inventory and receiving cash proceeds from its sale.

Use operating cycle in a sentence

The inventory for this operating cycle arrived a month ago, and we already have all the items sold and paid for.

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The timing on the operating cycle was tight, but we made it work this quarter and hoped to have a little more cushion in the year to come.

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As an approximation, the operating cycle will continue for 6 months before an evaluation of profits will be conducted by a professional accountant that specializes in this companies type of business.

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operating costs cycle