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.

One of the key tenets of retail is to turn your inventory as quickly as possible. In some cases, it's better to sell items at breakeven or a loss so that you can use that money to buy new inventory ...

The cash conversion cycle is one way to measure the effectiveness of the overall health of your company. There are three key data points to the equation: This combination expresses the length of time ...