TY - JOUR
AU - Groth, John C.
AB - Highlights the operating cycle, its importance, and reviews basicrelationships related to the cycle. In particular, it focuses on capitalflow through, invested capital, capital at risk, andeconomic returns generated relative to capital employed. Reveals anamplification effect that results from improvements in the management ofthe cycle, that benefit traceable to a reduction in operating riskallowing incremental benefits from financial leverage. Suggests specificactions to take with respect to the cycle that will improve the value ofyour firm. Shows that small improvements in operating factors within thecycle yield amplified benefits to the firm. The discussion ignores taxesexcept in instances when tax effects are important. This does notdetract from the discourse or conclusions. Reveals that increases infirm value that result from improved management of the operating cyclestem from several sources greater levels of economic returns fromoperations a reduction in operating risk less capital invested and atlower risk lower cost of capital and increased tax benefit.
TI - The Operating Cycle Risk, Return and Opportunities
JF - Management Decision
DO - 10.1108/00251749210014725
DA - 1992-04-01
UR - https://www.deepdyve.com/lp/emerald-publishing/the-operating-cycle-risk-return-and-opportunities-iSeao4QwM1
VL - 30
IS - 4
DP - DeepDyve
ER -