Operating cycle

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Revision as of 13:50, 9 February 2017 by imported>Doug Williamson (Create the page. Source: Award CMF October 2016 Unit 2 page 36.)
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Working capital management

The time interval between purchasing raw materials and receiving payment for finished goods.

The operating cycle is the total of:

Days inventory outstanding (DIO) + Days receivables outstanding (DRO)


See also

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