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ИД «Финансы и кредит»






Economic Analysis: Theory and Practice

Current approaches to calculating the operating and financial cycle duration: An update

Vol. 17, Iss. 8, AUGUST 2018

PDF  Article PDF Version

Received: 28 June 2018

Received in revised form: 12 July 2018

Accepted: 23 July 2018

Available online: 29 August 2018

Subject Heading: SCHOLAR DISPUTE

JEL Classification: O12, Q01

Pages: 1564–1583


Savitskaya G.V. Belarus State Economic University, Minsk, Republic of Belarus

ORCID id: not available

Importance The article considers operating and financial cycles being the key indicators of efficient management of working capital. There are differences in opinions on how to define and calculate them.
Objectives The study aims to perform a comprehensive analysis of the areas of concern in the methodology for calculating the duration of operating and financial cycle, and to substantiate an original position on the problems under consideration.
Methods Works of domestic and international economists on financial analysis create the theoretical and methodological basis of the research. I apply a historical approach involving general and special methods of analysis, synthesis and analogies.
Results The paper redefined economic essence and calculation techniques of operating and financial cycles duration and their components.
Conclusions The proposed approach may serve as a basis for further development of the financial analysis methodology, and as a methodological guide for business entities to monitor and make business decisions in the process of working capital management.

Keywords: operating cycle, financial cycle, calculation algorithm


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