The Research Relationship between the Operation Cycle and the Criteria ROS and ROA

The present study provides a clear view of the dynamic behavior of accounting data in macroeconomic texture, which may be a useful guideline for the analysts and users of financial statements to predict the main variables of accounting. The study helps decision makers improve their predictions of corporate performance consistent with macroeconomic conditions. Therefore, the present findings may assist decision makers, investors, financial analysts and corporate managers .A cycle begins with a period of economic expansion in economic activities and ends up with a depression. In other words, each business cycle includes the stages of improvement, boom, downturn and regression .In order to test research hypotheses, the data issued by the companies listed in TSE was studied for the 1998-2009 period. Spearman test, linear regression and developed linear models were used to analyze the data. The results showed a significant correlation of business cycles with ROS and ROA.