Retention ratio

Retention Ratio indicates the percentage of a company's earnings that are not paid out in dividends but credited to retained earnings. It is the opposite of the dividend payout ratio, so that also called the retention rate.

Retention Ratio = 1 - Dividend Payout Ratio


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  • retention ratio — UK US noun [S] ACCOUNTING, FINANCE ► the percentage of a company s profits that it decides to keep, rather than paying it to the shareholders as a dividend (= part of the profit that is paid to shareholders): »The higher the retention ratio (i.e …   Financial and business terms

  • 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: The retention ratio is the opposite of the dividend payout ratio. In fact, it can also be… …   Investment dictionary

  • Earnings retention ratio — Plowback rate. The New York Times Financial Glossary …   Financial and business terms

  • earnings retention ratio — plowback rate. Bloomberg Financial Dictionary …   Financial and business terms

  • Retention rate — The percentage of present earnings held back or retained by a corporation, or one minus the dividend payout rate. Also called the retention ratio. The New York Times Financial Glossary …   Financial and business terms

  • retention rate — The percentage of present earnings held back or retained by a corporation, or one minus the dividend payout rate . Also called the retention ratio . Bloomberg Financial Dictionary …   Financial and business terms

  • Plowback Ratio — A fundamental analysis ratio that measures the amount of earnings retained after dividends have been paid out. This is the opposite of the payout ratio, which measures the amount of dividends that are paid out as a percentage of earnings. Also… …   Investment dictionary

  • Dividend payout ratio — is the fraction of net income a firm pays to its stockholders in dividends: The part of the earnings not paid to investors is left for investment to provide for future earnings growth. Investors seeking high current income and limited capital… …   Wikipedia

  • customer retention — UK US noun [U] COMMERCE ► the fact of keeping a customer for a period of time: customer retention rate/ratio »The firm s customer retention rate has remained steady at 82% …   Financial and business terms

  • payout ratio —   Termine con il quale viene indicata la quota di utile distribuita agli azionisti. Moltiplicando l utile per azione per il payout ratio otteniamo l importo complessivo dei dividendi. Da notare che per le diverse categorie di azioni il payout… …   Glossario di economia e finanza


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