What is an Operating Cycle? An Operating Cycle (OC) refers to the days required for a business to receive inventory, sell the inventory, and collect cash from the sale of the inventory.

Dec 16, 2025 · An operating cycle refers to the time it takes a company to buy goods, sell them and receive cash from the sale of said goods. In other words, it's how long it takes a company to turn its …

Apr 18, 2024 · An operating cycle refers to the number of days it takes for a company to convert its investment in inventory, accounts receivable (A/R), and accounts payable (A/P) into cash.

The operating cycle measures the length of time that passes between when a business orders materials or goods and when it collects cash from the sale of the resulting goods it produces or resells.

Jul 25, 2025 · 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 …

Aug 29, 2024 · The operating cycle is a financial metric that measures the time it takes for a company to convert its investments in inventory and accounts receivable into cash.

The operating cycle is the time required for a company's cash to be put into its operations and then return to the company's cash account