Your company's operating cycle provides a gauge of how long it has cash tied up in operations, which is why it's also commonly referred to as the cash conversion cycle. The operating cycle is a rough ...

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.

The cash conversion cycle is one way to measure the effectiveness of the overall health of your company. There are three key data points to the equation: This combination expresses the length of time ...

In accrual accounting, determining exactly how a company generates or burns its cash is not as straightforward as you may expect. Because of the way companies must record their accounts payable and ...