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The percent of earnings credited to retained earnings. In other words, the proportion of net income that is not paid out as dividends. | The percent of earnings credited to retained earnings. In other words, the proportion of net income that is not paid out as dividends. | ||
Version vom 30. Oktober 2007, 19:12 Uhr
Retention Ratio
The percent of earnings credited to retained earnings. In other words, the proportion of net income that is not paid out as dividends.
Calculated as: Net Income - Dividens / Net Income
The retention ratio is the opposite of the dividend payout ratio. In fact, it can also be calculated as one minus the dividend payout ratio.