Retention Ratio

Business, Legal & Accounting Glossary

Definition: Retention Ratio


Retention Ratio


Full Definition of Retention Ratio


The retention ratio is how much of a firm’s net income is kept by the firm. In other words, how much is not paid out as dividends.

Retention\ ratio = \frac{net\ income - dividends\ paid}{net\ income}

Related Phrases


Payout ratio
Dividend
Return on equity


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, from PayrollHeaven.com website: https://payrollheaven.com/define/retention-ratio/

Definition Sources


Definitions for Retention Ratio are sourced/syndicated and enhanced from:

  • A Dictionary of Economics (Oxford Quick Reference)
  • Oxford Dictionary Of Accounting
  • Oxford Dictionary Of Business & Management

This glossary post was last updated: 29th November, 2021 | 0 Views.