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:
explains 'Retention Ratio'
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.
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Posted by Muhammad Atif Saeed
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By Muhammad Atif Saeed
on 20:59. Filed under
Definitions
,
r
.
Follow any responses to the RSS 2.0. Leave a response
