calculate_operating_cycle
Calculate the operating cycle: days inventory outstanding plus days sales outstanding — the total number of days from purchasing inventory to collecting cash from customers. Formula: Operating Cycle = Days Inventory Outstanding + Days Sales Outstanding. WHEN TO USE: Use to measure the full cash-to-cash duration of operations before supplier terms are considered; shorter cycles free up cash faster. WHEN NOT TO USE: Do NOT use unless DIO and DSO are computed on a consistent 365-day basis; for the net (supplier-financed) view use calculate_cash_conversion_cycle. BEHAVIOUR: pure deterministic calculation — no side effects, no network or storage access; idempotent and non-destructive; identical inputs always produce identical outputs. Division by zero or non-finite inputs returns an explicit error instead of a number. RETURNS: JSON object { operating_cycle: number (e.g. 106.4 days), inputs }. PARAMETERS: dio (required): Days inventory outstanding, e.g. 60.8. dso (required): Days sales outstanding, e.g. 45.6.
Input Schema
| Name | Required | Description | Default |
|---|---|---|---|
| dio | Yes | Days inventory outstanding, e.g. 60.8. | |
| dso | Yes | Days sales outstanding, e.g. 45.6. |