Quantcast

Retention Ratio

Last modified by
on
Jul 24, 2020, 6:28:07 PM
Created by
on
Jul 18, 2014, 6:30:43 AM
`"Retention Ratio" = ( "Net Income" - "Dividends" )/( "Net Income" )`
`"Net Income"`
`"Dividends"`
Tags
UUID
0b345262-0e45-11e4-b7aa-bc764e2038f2

The Retention ratio reveals the proportion of revenue kept back by the company, as opposed to being paid out to common stock shareholders. The amount retained could be reinvested for growth in the company or considered an opportunity cost of paying dividends for stockholders to invest elsewhere. It is also known as “plowback ratio.”


  • Comments
  • Attachments
  • Stats
No comments
This site uses cookies to give you the best, most relevant experience. By continuing to browse the site you are agreeing to our use of cookies.