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Retention Ratio Calculator

Answers the Question

How much money is the company keeping for business purposes?

Calculator for Retention Ratio

 

What Is the Retention Ratio?

When a company earns money, it can do one of two things. It can either hold on to it for investment and hedging risk, or the firm can return it to investors.

The retention ratio shows how much of the profit a firm keeps for its own uses, relative to what it earns.

Why Is it Important?

Formula(s) to Calculate Retention Ratio

Common Mistakes

Additional Business & Financial Calculators Available