标题: Net operating cycle vs operating cycle? [打印本页] 作者: nixie24 时间: 2011-7-13 16:15 标题: Net operating cycle vs operating cycle?
Hey guys, I can't seem to find what the difference is between the two. I had a question asking if days in payables increased, what would happen. I choose decrease in operating cycle but the answer was decrease in net operating cycle.
Thxn!作者: cyber21 时间: 2011-7-13 16:15
Operating cycle = Days of inventory on hand + Days of sales outstanding
Net operating cycle = Days of inventory on hand + Days of sales outstanding - Number of days payables
Net operating cycle is also called cash conversion cycle.作者: ramzes 时间: 2011-7-13 16:15
If anyone is having a hard time remembering the formula for the CCC (i did) I used the acronym RIP to remember it lol. Receivables + Inventory - Payables.作者: scr879 时间: 2011-7-13 16:15
