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Retention Ratio

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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.

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