Tag Archives: Operating cycle

How productive is your business

Despite the numerous financial ratios and analysis available to measure the business performance, we have found that operating cycle is the single measure that enables understanding of how quickly you are transforming your resources into cash. OPERATING CYCLE is the sum of Stock Turnover and Debtor Collection. This measure should be consistently monitored and improving the speed at which you turn you stock into cash the less working capital you require and the quicker you can grow the business. In our next post, we will Continue reading →