FormulaDen.com

Physics Chemistry Math Chemical Engineering Civil Electrical Electronics Electronics and Instrumentation Materials Science Mechanical Production Engineering Financial Health

Retention Ratio Formula

Fx Copy

LaTeX Copy

Retention Ratio is the proportion of earnings kept back in the business as retained earnings. Check FAQs

RR = \frac{NI - D}{NI}

RR - Retention Ratio?NI - Net Income?D - Dividend?

Retention Ratio Example

With values

With units

Only example

Here is how the Retention Ratio equation looks like with Values.

Here is how the Retention Ratio equation looks like with Units.

Here is how the Retention Ratio equation looks like.

0.9999 = \frac{200000 - 25}{200000}

0.9999 = \frac{200000 - 25}{200000}

0.9999 = \frac{200000 - 25}{200000}

Tip: Use pencil ( Pencil

) icon above to edit Input Values and Units.

Calculate

Recalculate

Solution

Copy

Reset

You are here -

Home » Category

Financial » Category

Business » fx Retention Ratio

Retention Ratio Solution

Follow our step by step solution on how to calculate Retention Ratio?

FIRST Step Consider the formula

RR = \frac{NI - D}{NI}

Next Step Substitute values of Variables

∴

RR = \frac{200000 - 25}{200000}

Next Step Prepare to Evaluate

∴

RR = \frac{200000 - 25}{200000}

Next Step Evaluate

∴

RR = 0.999875

LAST Step Rounding Answer

∴

RR = 0.9999

Retention Ratio Formula Elements

Variables

Retention Ratio

Retention Ratio is the proportion of earnings kept back in the business as retained earnings.

Symbol: RR

Measurement: NAUnit: Unitless

Note: Value can be positive or negative.

Formulas to find Retention Ratio

Net Income

Net income is a company's total earnings.

Symbol: NI

Measurement: NAUnit: Unitless

Note: Value can be positive or negative.

Formulas to find Net Income

Dividend

Dividend is a distribution of a portion of a company's earnings, decided by the board of directors, to a class of its shareholders.

Symbol: D

Measurement: NAUnit: Unitless

Note: Value can be positive or negative.

Formulas to find Dividend

Other formulas in Business category

Go Inventory Shrinkage

IS = (\frac{RI - I}{RI}) \cdot 100

Go Modified Duration

MD = \frac{Macaulay dur}{1 + \frac{YTM}{n}}

Go Macaulay Duration

Macaulay dur = \sum (x, 1, 5, cfn, ({(\frac{CF}{1 + \frac{YTM}{n c}})}^{cfn})) \cdot (\frac{T yrs}{PV})

How to Evaluate Retention Ratio?

Retention Ratio evaluator uses Retention Ratio = (Net Income-Dividend)/Net Income to evaluate the Retention Ratio, Retention Ratio is the proportion of earnings kept back in the business as retained earnings. Retention Ratio is denoted by RR symbol.

How to evaluate Retention Ratio using this online evaluator? To use this online evaluator for Retention Ratio, enter Net Income (NI) & Dividend (D) and hit the calculate button.

FAQs on Retention Ratio

What is the formula to find Retention Ratio?

The formula of Retention Ratio is expressed as Retention Ratio = (Net Income-Dividend)/Net Income. Here is an example- 0.999875 = (200000-25)/200000.

How to calculate Retention Ratio?

With Net Income (NI) & Dividend (D) we can find Retention Ratio using the formula - Retention Ratio = (Net Income-Dividend)/Net Income.

Let Others Know

✖

Facebook

Twitter

Copied!

: Value
: Unit

Retention Ratio Formula

Retention Ratio Example

Retention Ratio Solution

Retention Ratio Formula Elements

Other formulas in Business category

How to Evaluate Retention Ratio?

FAQs on Retention Ratio

Variable Name