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.
