Get 20M+ Full-Text Papers For Less Than $1.50/day. Start a 14-Day Trial for You or Your Team.

Learn More →

The Operating Cycle Risk, Return and Opportunities

The Operating Cycle Risk, Return and Opportunities 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. http://www.deepdyve.com/assets/images/DeepDyve-Logo-lg.png Management Decision Emerald Publishing

The Operating Cycle Risk, Return and Opportunities

Management Decision , Volume 30 (4) – Apr 1, 1992

Loading next page...
 
/lp/emerald-publishing/the-operating-cycle-risk-return-and-opportunities-iSeao4QwM1

References

References for this paper are not available at this time. We will be adding them shortly, thank you for your patience.

Publisher
Emerald Publishing
Copyright
Copyright © Emerald Group Publishing Limited
ISSN
0025-1747
DOI
10.1108/00251749210014725
Publisher site
See Article on Publisher Site

Abstract

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.

Journal

Management DecisionEmerald Publishing

Published: Apr 1, 1992

There are no references for this article.