The length of the operating cycle of the company, or cyclo-goods-money money is called economic maturation period of the company. At this time raw materials are acquired, transformed, stored, sold and charged to customers. Therefore, the average period of economic maturation of the company is composed of the average period of storage of raw materials, the manufacturing, sales and customer collection.
The knowledge of this ratio is useful for the financial management of the company, especially to determine the financial ripening period, subtracting the days that finance providers and working capital calculated by the analytical method.
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