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.

Accounting is very important for running any kind of business, especially a small business. Accurately keeping track of expenses and profits can result in a small business earning a lot of money or ...

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 ...

Adam Hayes, Ph.D., CFA, is a financial writer with 15+ years Wall Street experience as a derivatives trader. Besides his extensive derivative trading expertise, Adam is an expert in economics and ...