Retention Ratio

Deutsch: Thesaurierungsquote

The percent of earnings credited to retained earnings. In other words, the proportion of net income that is not paid out as dividends.

Retention Ratio = (Net Income - Dividends) / Net Income

The retention ratio is the opposite of the dividend payout ratio. In fact, it can also be calculated as one minus the dividend payout ratio.

Verwandte Begriffe: Gewinnausschüttungsquote