Opr cycle is the no of days it takes to convert the raw materials into cash proceeds from sales. Cash conversion cycle is the no of days it takes to turn the the firm’s investment in raw materials to cash. What is the diffr in thesr two definitions ? I understand the diffr in their formula. I want to know the diffr in interpretation of the definitions. Also, is net opr cycle the same as cash conversion cycle?
The operating cycle is the amount of time that elapses between the day you buy inventory and the day you get paid by your customers for the inventory; it’s:
Operating Cycle = # Days of Inventory on Hand + # Days Sales Outstanding
The cash conversion cycle – also called the net operating cycle – is the amount of time that elapses between the day that you pay for inventory and the day that you get paid by your customers for the inventory; it’s:
Cash Conversion Cycle = # Days of Inventory on Hand + # Days Sales Outstanding – # Days of Payables
Cool. This should have been intuitive by now 
Cash conversion cycle starts when you pay your supplier and ends when your buyer pays you.The operating cycle starts with accquiring of inventory and raw materials and end with reciept of payment.
Yes,the cash conversion cycle is also known as net operating cycle.they are one and the same thing.