Retention Ratio

Filed Under »
Dictionary Says

Definition of '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:

Retention Ratio
Investopedia Says

Investopedia 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.

Related Definitions

Search results for

'Retention Ratio'

  • Big Dividends In Utilities

    http://stocks.investopedia.com/stock-analysis/2010/Big-Dividends-In-Utilities-PGN-POM-AEE-NI-DUK-FE-CNP-ED-SO-TE0316.aspx
    ... With a retention ratio of 24%, investors can expect sustainable growth in earnings
    at around 4%. But the current ROE of 15.96% understates the return to equity ...

  • What would happen to a company's external fund requirements if it ...

    http://www.investopedia.com/ask/answers/09/fund-requirements-payout-ratio.asp
    ... an external fund. If internal cash flow or the retention ratio increases,
    external fund requirements would decrease. If internal ...

  • CFA Level 1 Study Guide - Equity Investments - The Concentration ...

    http://www.investopedia.com/exam-guide/cfa-level-1/equity-investments/concentration-ratio-herfindahl-index.asp
    ... 1.20 Standard VC: Record Retention; 1.21 Standard VI-A: Disclosure Of Conflicts; ...
    Cycle Analysis: The Industry Life Cycle; 13.10 The Concentration Ratio and the ...

  • CFA Level 1 Study Guide - Ethics and Standards - Standard VC ...

    http://www.investopedia.com/exam-guide/cfa-level-1/ethics-standards/standard-record-retention.asp
    ... 1.20 Standard VC: Record Retention; 1.21 Standard VI-A: Disclosure Of Conflicts; ...
    Cycle Analysis: The Industry Life Cycle; 13.10 The Concentration Ratio and the ...

  • CFA Level 1 Study Guide - Financial Ratios - Growth Potential ...

    http://www.investopedia.com/exam-guide/cfa-level-1/financial-ratios/growth-potential-ratios.asp
    ... 1.20 Standard VC: Record Retention; 1.21 Standard VI-A: Disclosure Of Conflicts; ...
    Cycle Analysis: The Industry Life Cycle; 13.10 The Concentration Ratio and the ...

  • CFA Level 1 Study Guide - Liabilities - Effects Of Off-Balance ...

    http://www.investopedia.com/exam-guide/cfa-level-1/liabilities/off-balance-sheet-financing-ratio-effect.asp
    ... 1.20 Standard VC: Record Retention; 1.21 Standard VI-A: Disclosure Of Conflicts; ...
    Cycle Analysis: The Industry Life Cycle; 13.10 The Concentration Ratio and the ...

  • Valuing Firms Using Present Value Of Free Cash Flows

    http://www.investopedia.com/articles/fundamental-analysis/11/present-value-free-cash-flow.asp
    ... Where: RR= average retention rate, or (1- payout ratio) ROIC= EBIT(1-tax)/total
    capital Present Value of Operating Free Cash Flows The valuation method is ...

  • Great Dividend Yield Payouts

    http://stocks.investopedia.com/stock-analysis/2010/Great-Dividend-Yield-Payouts-BMY-AYR-ELNK-COP-SCCO-GRMN0826.aspx
    ... 2010. The payout ratio is around 67%, so the company has decided its best
    use of the earnings should be decided by the holders. ...

  • Berkley Looking Unloved

    http://stocks.investopedia.com/stock-analysis/2011/Berkley-Looking-Unloved-WRB-ACGL-RNR-BRK-A-ALL-TRV-XL0427.aspx
    ... company reported that pricing improved by about 1%, while renewal retention rose
    to ... Email. Results were hurt by a higher than expected combined ratio - that is ...

  • When Things Go Awry, Insurers Get Reinsured

    http://www.investopedia.com/articles/pf/08/reinsurance.asp
    ... would have to pay the entire loss because it is within the retention limit of ... contract
    term (usually one year) in excess of either a specified loss ratio or a ...

Related Articles

Partner Links