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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Retention Ratio Formula

​LaTeX ​Go
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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