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1. Liquidity Vs Profitability decisions of the firm; The higher a firm retains liquid assets (cash), the shorter the operating cycle
2. Industry norms: eg Retail vs construction. A Construction firm will have a longer operating cycle, since they have long term projects, while the bulk of payment is received towards the end of the project. A retail business on the other hand, eg a supermarket has a short or even negative operating cycle, since there are very few credit customers, there is high turnover and can negotiate long credit period with suppliers.
3. Management efficiency. The less efficient the management of a firm, the longer the operating cycle and vice versa.
What else can I help you with?
What factors affect operationg cycle?
The main factors that affect the operating cycle of a company include the efficiency of its inventory management, the speed at which it collects accounts receivable, and the time it takes to pay its accounts payable. These factors directly impact how quickly a company can convert its investments in inventory and accounts receivable back into cash.
How does human factors influence or affect the nitrogen cycle?
Human factors influence or affect the nitrogen cycle through interacting physical, chemical and biological processes.
How do abiotic factors in an ecosystem affect the water cycle?
In the water cycle, biotic factors might include fish, plant life, reptiles and other aquatic animals. Abiotic factors might include rocks, minerals, vitamins and the likes.
How long should LED light bulbs last and what factors can affect their lifespan?
LED light bulbs should last around 15,000 to 50,000 hours. Factors that can affect their lifespan include the quality of the bulb, usage patterns, operating temperature, and electrical fluctuations.
What are some ways that can affect the water cycle?
being near the equator and near the pole there is two more but i don't know them
What factors affect operationg cycle?
The main factors that affect the operating cycle of a company include the efficiency of its inventory management, the speed at which it collects accounts receivable, and the time it takes to pay its accounts payable. These factors directly impact how quickly a company can convert its investments in inventory and accounts receivable back into cash.
What are the factors that affect the cycle?
Weathering and transportation
How does human factors influence or affect the nitrogen cycle?
Human factors influence or affect the nitrogen cycle through interacting physical, chemical and biological processes.
What factors affect the choice of operating systems?
Reliability, security, cost, performance, and compatibility.
What factors and processes can affect the pathway that igneous rock takes in the rock cycle?
Melting and cooling
Factors in Operating System Design?
factors of operating system design
How do abiotic factors in an ecosystem affect the water cycle?
In the water cycle, biotic factors might include fish, plant life, reptiles and other aquatic animals. Abiotic factors might include rocks, minerals, vitamins and the likes.
How long do fluorescent lights last and what factors can affect their lifespan?
Fluorescent lights typically last around 10,000 to 15,000 hours. Factors that can affect their lifespan include the frequency of turning them on and off, the quality of the ballast, and the operating temperature.
What are the Factors affecting beta of a portifolio?
Factors that affect the beta of a portfolio are the kind of business the firm is in, and the extent of operating leverage the firm has. A third factor is the extent of the firm's financial clout.
What is a cash operating cycle?
A Cash operating Cycle is the average time taken to acquire goods and services and convert them to cash in producing revenues
What is operating cycle in accounting management?
Operating cycle is the time which required by the business from acquiring inventory to production and selling of products and generating revenue.
Can humans activivities affect the rock cyrcle?
Human activities influence different factors that affect the rock cycle, for example, soil erosion and weathering. Human activity such as mining affects rocks' weathering, affecting the rock cycle. Other human activities such as farming affect soil erosion, and soil erosion is a factor that affects the rock cycle.
