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Retention Ratio

 

 

Retention Ratio Formula

\( RR \;=\;  \dfrac{ RE }{ NI }   \)
Symbol
\( RR \) = retention ratio
\( NI \) = net income
\( RE \) = retained earnings

Retention ratio, abbreviated as RR, measures the amount of earnings retained by a company after dividends have been paid out. 

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