How to Calculate Net Operating Cycle?
Net Operating Cycle calculator uses Net Operating Cycle = ((365/Purchases)*Average Inventory)+((365/Net Receivables)*Average Accounts Receivables) to calculate the Net Operating Cycle, The Net Operating Cycle formula is defined as a financial metric that measures the time it takes for a company to convert its investments in inventory into cash from sales. Net Operating Cycle is denoted by NOC symbol.
How to calculate Net Operating Cycle using this online calculator? To use this online calculator for Net Operating Cycle, enter Purchases (P), Average Inventory (Avg_{i}), Net Receivables (NR) & Average Accounts Receivables (AAR) and hit the calculate button. Here is how the Net Operating Cycle calculation can be explained with given input values -> 35.00733 = ((365/25000)*2000)+((365/785645)*12500).