Operating cycle, Financial Management

Assignment Help:

Define operating cycle and long and short operating cycle?

Use of operating cycle?

Can someone give me assistance on these questions??

 


Related Discussions:- Operating cycle

Operating cycle, Uses of operating cycle in business

Uses of operating cycle in business

Types of fixed income securities or bonds, Types of Bonds 1. Secured ...

Types of Bonds 1. Secured Versus Unsecured Bonds 2.  Senior versus Subordinate Bonds 3.  Registered and Unregistered Bo

Analysis of operations, You must analyze the operating performance of your ...

You must analyze the operating performance of your company. You will use ratio analysis and primarily using Liquidity, Profitability and Working Capital ratios. You will use a g

What is a hedge fund, Q.What is a Hedge Fund? A Hedge Fund is a fund es...

Q.What is a Hedge Fund? A Hedge Fund is a fund established by one or else several partners with net worth of at least $1 million (although this maybe falling). It uses long as

Illustrate earning yield method, Q. Illustrate Earning Yield Method? Ea...

Q. Illustrate Earning Yield Method? Earning Yield Method: - As per this method, cost of equity capital is calculated by establishing a relationship between earning per share an

Pension fund system - uk, The UK Pension Fund System The UK Pension sys...

The UK Pension Fund System The UK Pension system is a three pillar pension system. A flat-rate first-tier pension is provided by the state and is known as the Basic State Pensi

State the term- financing decision, State the term- Financing Decision ...

State the term- Financing Decision The second financial decision is financing decision,which essentially addresses two questions: a. How much capital must be raised to fu

Sources of long term financing , you are checking a financial analyst''s re...

you are checking a financial analyst''s recommendation. the analyst projects a company''s stock price to be P72 per share in 3 years. the most recent annual dividend was P1.68 per

Role of Trustee in Pension Fund, Role of Trustee in Pension Fund: Trust...

Role of Trustee in Pension Fund: Trustees are people in control of long-term asset allocation of a pension scheme. Whatever benchmark they set will, as we shall see, influence

WACC, WHY ORDINARY SHARES DIFFER IN DIFFERENT COMPANIES

WHY ORDINARY SHARES DIFFER IN DIFFERENT COMPANIES

Tom

2/14/2013 12:22:27 AM

Definition of Operating Cycle:

The operating cycle is the amount of time it takes for a company to turn cash used to buy inventory into cash once again. This number is evaluated by adding the age of inventory (the number of days that inventory is held prior to sale) with the collection period (the number of days needed to collect receivables). A company with a short operating cycle is able to quickly recover its investment. A corporation with a long operating cycle will have less cash available to meet any short-term requirements, which can result in increased borrowing and interest expense.

Write Your Message!

Captcha
Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd