18
Mar
What is Operating Cycle & How to calculate it? with Formula
- By: admin@z9
- Category: Bookkeeping
- 0 comment
By understanding these components, you can gain insights into how efficiently your business is managing inventory, collecting payments, and paying suppliers. In the realm of business finance, understanding the concept of the operating cycle is not just about processing a formula; it’s about comprehending a company’s efficiency, liquidity, and overall financial health. On the other hand, a longer operating cycle might hint at potential issues that require attention. Example 1:…
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