search query: @author Groth, J. C. / total: 9
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| Author: | Groth, J. C. |
| Title: | The operating cycle: risk, return and opportunities |
| Journal: | Management Decision
1992 : VOL. 30:4, p. 3-11 |
| Index terms: | CAPITAL CASH FLOW RISK RATE OF RETURN MANAGEMENT RAW MATERIALS |
| Language: | eng |
| Abstract: | Most commonly the operating cycle includes the assets, cash, raw materials , work in process, finished goods, and accounts receivables. Some basic relationships related to the cycle are reviewed: caapital "flow through", invested capital, capital at risk, economic returns. An amplification effect that results from improvements in the management of the cycle is revealed. Specific actions are suggested that will improve the value of the firm. It is shown how careful management can reduce capital employed, increase returns on capital, and reduce the business risk associated with those returns. All discussions are on a cash basis. A focus on cash is especially crucial in surviving a recession or periods of growth. |
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