Financial Ratios
Working Capital Cycle
Definition
What is Working Capital Cycle?
The time between paying suppliers and collecting cash from customers.
Example in practice
How This Looks in Practice
A shorter cycle reduces the amount of cash tied up in operations.
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Related Terms
Financial Ratios
Gross Margin
Gross profit expressed as a percentage of revenue.
Financial RatiosOperating Margin
Operating profit expressed as a percentage of revenue.
Financial RatiosEBITDA Margin
EBITDA expressed as a percentage of revenue.
Equity ValuationEarnings Per Share
Net income attributable to ordinary shareholders divided by weighted average ordinary shares.