An online operating cycle calculator to find the number of days required to operate the net operating cycle. Operating Cycle helps in the measurement of the operating efficiency and working capital management of a concern. It is the number of days that a company take in converting its inventory into cash. Enter the days inventory, days sales and days payables outstanding in the below Cash Conversion Cycle calculator to find the resultant value.
If Inventory outstanding has 60 days, sales outstanding has 25 days and payables outstanding has 50 days, what is its operating cycle?
Net Operating Cycle = 60 + 25 - 50
= 35 days