A company's operating cycle, or cash conversion cycle, shows the length of time it takes a company to buy inventory, convert it into sales and collect the "accounts receivable" revenue from the sales.

One of the key tenets of retail is to turn your inventory as quickly as possible. In some cases, it's better to sell items at breakeven or a loss so that you can use that money to buy new inventory ...

Increasing accounts payable can boost a company's cash flow by delaying payments. Higher accounts receivable can reduce cash flow since it involves waiting for customer payments. Review the statement ...