operating cycle

Definition

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

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Related Terms

cycle -

Related Terms on BusinessDictionary

non-current asset
new

number of days of inventory on hand
time period concept

Popular 'Accounting' Terms

current ratio
equity
working capital
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revenue
net income
negotiable
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net worth

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Nearby Terms

opening transaction
operating
operating asset
operating cash flows
operating costs
operating cycle
operating expense
operating in the red
operating income
operating income before depreciation and amortization
operating lease

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