Money is tied up in inventory until it can be sold. As a result, cash invested in the inventory is not available for alternative uses. Maintaining a short operating cycle and cash conversion cycle are ...

Storing inventory is costly to a business. It takes up storage space, must be insured, may be stolen or damaged, may become obsolete before it is sold and may require refrigeration or increase utility ...

Troy Segal is an editor and writer. She has 20+ years of experience covering personal finance, wealth management, and business news. Being able to assess a company’s operating cash flow (OCF)—and how ...

Interested in the working principle of operating profit and how the calculation is made? Operating profit is the resulting profit made by a company after deducting cost of goods sold and operating ...