A company's operating cycle, or cash conversion cycle, shows the length of time it takes a company to buy inventory, convert it into sales and collect the "accounts receivable" revenue from the sales.

Operating working capital measures the amount of cash required to finance the components of a company's operating cycle -- the process by which a business buys and sells inventory, pays suppliers and ...

Operating cycles and cash cycles are measures of how effective a company is at managing its cash. When a company invests in inventory, its cash is tied up until the items in question are sold. As a ...