operational cycle
[/ˌɑːpəˈreɪʃənəl ˈsaɪkəl/]
nounpl: operational cycles
ciclo operacional
1. The period of time required for a company to convert its investments in inventory and receivables back into cash
The operational cycle of a retail business includes purchasing inventory, selling products, and collecting payment from customers.
O ciclo operacional de um negócio de varejo inclui comprar estoque, vender produtos e coletar pagamento dos clientes.
2. The time span from when a business acquires raw materials until it receives cash from the sale of finished goods
By reducing the operational cycle, the company improved its cash flow significantly.
Ao reduzir o ciclo operacional, a empresa melhorou significativamente seu fluxo de caixa.
3. In accounting and finance, the complete sequence of business activities from procurement to cash collection
Management focused on shortening the operational cycle to enhance liquidity.
A gerência concentrou-se em encurtar o ciclo operacional para melhorar a liquidez.
This term is fundamental in business education and corporate finance in both Brazil and the USA. Brazilian companies increasingly focus on reducing the operational cycle to improve competitiveness in the global market. The concept is taught extensively in Brazilian business schools (INSEAD, FGV, USP) and is essential for understanding working capital management in both countries.
Related Idioms & Phrases
shorten the operational cycle
lengthen the operational cycle
optimize the operational cycle
streamline operations
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