LCM of two numbers

Retention Ratio Calculator

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✖Net income is a company's total earnings.ⓘ Net Income [NI]			+10% -10%
✖Dividend is a distribution of a portion of a company's earnings, decided by the board of directors, to a class of its shareholders.ⓘ Dividend [D]			+10% -10%

✖Retention Ratio is the proportion of earnings kept back in the business as retained earnings.ⓘ Retention Ratio [RR]

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Formula

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Retention Ratio

Formula

RR = \frac{NI - D}{NI}

Example

0.999875 = \frac{200000 - 25}{200000}

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Retention Ratio Solution

STEP 0: Pre-Calculation Summary

Formula Used

Retention Ratio = (Net Income-Dividend)/Net Income
RR = (NI-D)/NI
This formula uses 3 Variables

Variables Used

Retention Ratio - Retention Ratio is the proportion of earnings kept back in the business as retained earnings.
Net Income - Net income is a company's total earnings.
Dividend - Dividend is a distribution of a portion of a company's earnings, decided by the board of directors, to a class of its shareholders.

STEP 1: Convert Input(s) to Base Unit

Net Income: 200000 --> No Conversion Required
Dividend: 25 --> No Conversion Required

STEP 2: Evaluate Formula

Substituting Input Values in Formula

RR = (NI-D)/NI --> (200000-25)/200000

Evaluating ... ...

RR = 0.999875

STEP 3: Convert Result to Output's Unit

0.999875 --> No Conversion Required

FINAL ANSWER

0.999875 <-- Retention Ratio

(Calculation completed in 00.004 seconds)

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Created by Team Softusvista

Softusvista Office (Pune), India

Team Softusvista has created this Calculator and 600+ more calculators!

Verified by Himanshi Sharma

Bhilai Institute of Technology (BIT), Raipur

Himanshi Sharma has verified this Calculator and 800+ more calculators!

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Retention Ratio

Go Retention Ratio = (Net Income-Dividend)/Net Income

Retention Ratio Formula

Retention Ratio = (Net Income-Dividend)/Net Income
RR = (NI-D)/NI

How to Calculate Retention Ratio?

Retention Ratio calculator uses Retention Ratio = (Net Income-Dividend)/Net Income to calculate the Retention Ratio, Retention Ratio is the proportion of earnings kept back in the business as retained earnings. Retention Ratio is denoted by RR symbol.

How to calculate Retention Ratio using this online calculator? To use this online calculator for Retention Ratio, enter Net Income (NI) & Dividend (D) and hit the calculate button. Here is how the Retention Ratio calculation can be explained with given input values -> 0.999875 = (200000-25)/200000.

FAQ

What is Retention Ratio?

Retention Ratio is the proportion of earnings kept back in the business as retained earnings and is represented as RR = (NI-D)/NI or Retention Ratio = (Net Income-Dividend)/Net Income. Net income is a company's total earnings & Dividend is a distribution of a portion of a company's earnings, decided by the board of directors, to a class of its shareholders.

How to calculate Retention Ratio?

Retention Ratio is the proportion of earnings kept back in the business as retained earnings is calculated using Retention Ratio = (Net Income-Dividend)/Net Income. To calculate Retention Ratio, you need Net Income (NI) & Dividend (D). With our tool, you need to enter the respective value for Net Income & Dividend and hit the calculate button. You can also select the units (if any) for Input(s) and the Output as well.

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