An operating cycle is the time from when inventory is purchased to when cash is collected from the sale of that inventory. Learn about two ratios that can tell you the length of a company’s operating cycle: days sales in inventory and average collection p
- While net income provides the best measure…of Affirm's economic performance…and maybe the best indication…of a company's long term potential, we've all heard…the saying that cash is king.…To get to the long term, one has to live through…the short term, and the short term requires cash.…- Now, sure, companies can borrow money,…and companies can sell ownership interest,…but you can only borrow so much money before the lenders…start to get nervous about repayment.…You can only sell so much stock before investors start…to wonder about future cash flows.…
Lenders lend expecting future operating cashflow,…and investors invest expecting future operating cashflow.…- Let's talk about operating cashflow…specifically a company's operating cycle.…The operating cycle is the length of time…from when a company purchases inventory for resale…to when the company receives the cash from the sale…of that inventory.…- In other words, how long does inventory sit…as inventory until it's sold, and how long must the company…wait to receive payment from the customer?…
Skill Level Beginner
Q: Why can't I earn a Certificate of Completion for this course?
A: We publish a new tutorial or tutorials for this course on a regular basis. We are unable to offer a Certificate of Completion because it is an ever-evolving course that is not designed to be completed. Check back often for new movies.