Londonrocks

Also a few things to consider, that formula was NET operating cycle. When the NET operating cycle is negative, thats a GOOD thing, that means you are using other peoples money to finance your operation.

In contrast the "OPERATING CYCLE" (which cant be negative) is a smaller formula, but will always be a larger number:

365 / (sales / avg receivables) + 365 / (COGS / avg inventory)