Your company's operating cycle provides a gauge of how long it has cash tied up in operations, which is why it's also commonly referred to as the cash conversion cycle. The operating cycle is a rough ...

Money is tied up in inventory until it can be sold. As a result, cash invested in the inventory is not available for alternative uses. Maintaining a short operating cycle and cash conversion cycle are ...

Operating cycles and cash cycles are measures of how effective a company is at managing its cash. When a company invests in inventory, its cash is tied up until the items in question are sold. As a ...

Discover why operating cash flow is a more reliable metric than net income for assessing financial health and avoiding accounting manipulation risks.

Operating cash flow (OCF) is an important measurement to understand. It’s used to calculate financial success of a company’s critical activities. OCF is the first section portrayed on a cash flow ...

CFO measures money flow from core business activities, excluding external funding. Three cash flow types: operating, investing, and financing, each reflecting different activities. To analyze CFO, use ...