Retention Ratio

on . Posted in Project Management Engineering

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

 

Retention Ratio Formula

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

 

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