Enter the days inventory outstanding, days sales outstanding, and days payable outstanding. The calculator will evaluate the average operating cycle.
Operating Cycle Formula
The following formula is used to calculate the average operating cycle.
NOC = DIO + DSO – DPO
- NOC is the net operating cycle
- DIO is the days inventory outstanding.
- DSO is the days sales outstanding
- DPO is the days payables outstanding
Operating Cycle Definition
An operating cycle is a total number of days between inventory being sold and the days to receiving the payable for that inventory.
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