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How does the cash operating cycle relate to cash budgeting?

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Answer

The cash operating cycle (inventory days + receivables days - payables days) measures how long cash is tied up between paying suppliers and collecting from customers. A longer cycle means more financing need and appears in the cash budget as an earlier/larger cash gap; shortening it improves the projected cash position.
Cycle = Inventory days + Receivables days - Payables days.
Real-world example Reducing the cash operating cycle by 10 days visibly improves the budgeted cash balances.

Common follow-ups: What lengthens the cash cycle? | How does shortening it help the budget?

Types of Budgets Rolling Forecasts Cash Budgeting
All 34 Cash Budgeting questions