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Dear Shameer,
The operating cycle is the average period of time required for a business to make an initial outlay of cash to produce goods, sell the goods, and receive cash from customers in exchange for the goods. This is useful for estimating the amount of working capital that a company will need in order to maintain or grow its business.
Regards,
Hany Sewilam AbdelHamid
Head of Business Development | Sales & Marketing
Entrepreneurship Coach & Consultant
Digital & Social Marketing Certified Expert
it is the time from purchasing material until it is being transferred into revenue.
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