Operating Cycle Excel Template

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From the given data calculate the operating cycle of ABC limited.

Total Revenue (we assume all are Credit Sales) 1,000,000

Cost of Raw materials (Total Purchase) 650,000
Average Inventory 50,000
Average Accounts Receivables 25,000

Operating Cycle is calculated using the formula given below

Operating Cycle = [(365 / Purchases) * Average Inventories] +
[(365 / Receivables) * Average Accounts Receivable]

Operating Cycle 37.2

From the following data of VIP Industries, Find out the Operating cycle of the company.

INR in Crores
Total Revenue (we assume all are Credit Sales)
1415
Cost of Raw materials (Total Purchase) 735
Opening Inventory 282.63
Closing Inventory 316.52
Opening Accounts Receivables 120.96
Closing Accounts Receivables 176.57

Average Inventory 299.575

Average Accounts Receivables 148.765

Operating Cycle is calculated using the formula given below

Operating Cycle = [(365 / Purchases) * Average Inventories] +
[(365 / Receivables) * Average Accounts Receivable]

Operating Cycle 187.14

From the following data of Page Industries, Find out the Operating cycle of the company.

INR in Crores
Total Revenue (we assume all are Credit Sales) 2518.66
Cost of Raw materials (Total Purchase) 1087
Average Inventory 595.37
Average Accounts Receivables 130.35

Operating Cycle is calculated using the formula given below

Operating Cycle = [(365 / Purchases) * Average Inventories] +
[(365 / Receivables) * Average Accounts Receivable]

Operating Cycle 218.8