CONTRIBUTION/SALES RATIO (C/S RATIO) is a tool used in profit management. It is important to establish the C/S RATIO: C/S ratio = (Sales revenue- Variable cost of sales)/Sales revenue x 100. If a company achieves a high average marginal profit ratio of say, 40%, it does not mean that it will achieve high profits. The eventual profit will be dependent on the level of fixed costs within the organization.
FEDERAL DEPOSIT INSURANCE CORPORATION (FDIC)is an agency of the federal government that insures accounts at most commercial banks and mutual savings banks. The FDIC also has primary federal supervisory authority over insured state banks that are not members of the Federal Reserve System.
OPERATING CASH FLOW RATIO is a measure of how well current liabilities are covered by the cash flow generated from a companys operations. It is calculated: OCF = Cash Flow From Operations / Current Liabilities.
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