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What is the operating cycle of a business?

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Question ajoutée par Shameer Nazir Madari , Assistant Finance Manager , METAL AND RECYCLING COMPANY K.S.C. (PUBLIC)
Date de publication: 2016/04/22
Hany Sewilam Abdel Hamid
par Hany Sewilam Abdel Hamid , Director of Sales and Marketing , Creative Sense

Dear Shameer,

 

The operating cycle is the average period of time required for a business to make an initial outlay of cash to produce goods, sell the goods, and receive cash from customers in exchange for the goods. This is useful for estimating the amount of working capital that a company will need in order to maintain or grow its business.

 

Regards,

 

Hany Sewilam AbdelHamid

Head of Business Development | Sales & Marketing

Entrepreneurship Coach & Consultant

Digital & Social Marketing Certified Expert

Islam Eltokhy
par Islam Eltokhy , Service Account Manager , SIG Combibloc Obeikan

it is the time from purchasing material until it is being transferred into revenue.

 

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