Operating Cycle Calculator
Calculate the operating cycle to measure the total time from purchasing inventory to collecting cash from sales.
How to Use the Operating Cycle Calculator
- Enter average inventory and COGS.
- Enter accounts receivable and net sales.
- Click Calculate.
- Review the operating cycle breakdown.
Anwendungsfälle
- •Cash flow cycle analysis
- •Working capital management
- •Operational efficiency tracking
Formel
Operating Cycle = DIO + DSO
Häufig gestellte Fragen
What is the operating cycle?
It measures total days from buying inventory to receiving cash — shorter cycles mean faster cash generation.
How to shorten the operating cycle?
Reduce inventory holding time (lower DIO) or collect receivables faster (lower DSO).
Is this calculator free?
Yes, all calculators are completely free.