Calculation of Gross Operating Cycle

Formula
Gross Operating Cycle= Inventory Consumption Period + Debtor Convertion Period

ICP= RMCP + WIPCP + FGCP

(Raw Material Consumption Period+ Work-in-Progress+ Finished Goods Consumption Period)

RMCP= Raw Material Inventory* 360

Raw Material Consumption

WIPCP= Work-in-progress* 360

Cost of Production

FGCP= Finished Goods* 360

COGS

2017-18 2018-19 2019-20

RMCP
WICP
FGCP

DCP

GOC
 interpretation

ption Period)
Net Operating Cycle

Formulas

Net Operating Cycle= Day inventory outstanding+ Day Sales Outstanding+ Day Payable Outstanding

DSI(Day Inventory)= Average Inventory *365

COGS

DSO(Day Sales)= Average Receivable

Revenue

DPO(Day payable)= Average Payable

COGS

2017-18 2018-19 2019-20

DSI 284
DSO
DPO
Outstanding
Gross Working Capital

Formula

Gross Working Capital= Total Value of Current Assets

Current Assests 2017-18 2018-19 2019-20

Inventories 503.68 680.25 590.27

Trade Receivable 252.86 153.16 306.94
Cash and Cash Equivalents 2.6 4.48 20.68
Bank 0.56 0.9 1.07
Loan 0.18 0.18 0.5
Other Current Assets 79.37 121.94 99.8

Total Current Assets 839.25 960.91 1019.26

Net Working Capital

Formula

Net Working Captial= Current Assests

Current Liability

Total Current Assets Total Current Liability

2017-18 839.25 1216.79

2018-19 960.91 1103.71
2019-20 1019.26 844.57
rent Liability Net Working Capital

0.6897246
0.8706182
1.206839