Retention Ratio Calculator
Retention Ratio:
Formula: Retention Ratio = (Net Income – Dividends) / Net Income
Retention Ratio Calculator | ||
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Parameter | Description | Example Value |
Net Income | The total net income of the company. | $500,000 |
Dividends Paid | The total dividends paid to shareholders. | $100,000 |
Retention Ratio | The ratio of retained earnings to net income. Formula: (Net Income - Dividends Paid) / Net Income |
80% |