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.

## Related Terms

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