chrisbillakings Asked: May 21, 2020 In: Financial Analysis Cash Cycle (CC) or Net Operating Cycle 1k What is cash cycle and how is it calculated? cash cycle, net operating cycle Share Facebook You must be logged in to Answer this question! kindly login here or sign up here 1 Answer Voted Solutionwheels Best Answer 2020-05-22T01:10:09+00:00 Added an answer on May 22, 2020 at 1:10 am V Net operating cycle or the cash cycle measures the time lag between utilization and generation of cash used to finance the day-to-day operation of the business. It is calculated by: Cash cycle = Days Inventory + Days Receivable - Days Payable Deleted
Net operating cycle or the cash cycle measures the time lag between utilization and generation of cash used to finance the day-to-day operation of the business. It is calculated by:
Cash cycle = Days Inventory + Days Receivable - Days Payable