Retention Ratio Calculator

✖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" = ("NI"-"D")/"NI"`

Example

`"0.999875"=("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

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Verified by Himanshi Sharma

Bhilai Institute of Technology (BIT), Raipur

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< 22 Business Calculators

Macaulay Duration

Go Macaulay Duration = sum(x,1,5,Cash Flow Number,((Cash Flow/(1+Yield to Maturity (YTM)/Compounding Periods))^Cash Flow Number))*(Time in Years/Present Value)

Weighted Average Cost of Capital

Go Weighted average cost of capital = ((Market value of the firm’s equity/Firm Value)*Cost of Equity)+(((Market Value of the Firm’s Debt/Firm Value)*Cost of Debt)*(1-Corporate Tax Rate))

Total Inventory Cost

Go Total Inventory Cost = Carrying cost per unit per year*(Quantity of Each Order/2)+Fixed cost per order*(Demand in units per year/Quantity of Each Order)

Acid Test Ratio

Go Acid Test Ratio = (Cash+Accounts Receivable+Short Term Investments)/Current Liabilities

Economic Order Quantity

Go Economic Order Quantity = ((2*Fixed cost per order*Demand in units per year)/Carrying cost per unit per year)*(1/2)

Return on Capital Employed

Go Return on capital employed = (Earnings Before Interest and Taxes/(Total Assets-Current Liabilities))*100

Diluted Earnings per Share

Go Diluted Earnings per Share = Net Income/(Average Shares+Other Convertible Securities)

Inventory Shrinkage

Go Inventory Shrinkage = ((Recorded Inventory-Actual Inventory)/Recorded Inventory)*100

Modified Duration

Go Modified Duration = Macaulay Duration/(1+Yield to Maturity (YTM)/Coupon Periods)

Target Inventory Investment

Go Target Inventory Investment = Projected Annual Cost of Goods Sold from Stock Sales/Target Inventory Turnover

Retention Ratio

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

Contribution Margin per Unit

Go Contribution Margin per Unit = Sales Price per Unit-Variable Cost per Unit

Operating Expense Ratio

Go Operating Expense Ratio = (Operating Expense/Gross Operating Income)*100

Break-Even Point

Go Break Even Point = Fixed Costs/Contribution Margin per Unit

Estimated Earnings

Go Estimated Earnings = Forecasted Sales-Forecasted Expense

Debt Coverage Ratio

Go Debt Coverage Ratio = Net Operating Income/Debt Service

Dividends Per Share

Go Dividends Per Share = Total Dividends/Number of Shares

Solvency Ratio

Go Solvency Ratio = (Shareholders Fund*100)/Total Assets

Estimate at completion

Go Estimate at Completion = Actual Cost+Bottom up ETC

Percentage off

Go Percentage Off = 1-(Selling Price/Original Price)

Preferred Stock

Go Preferred Stock = Dividend/Discount Percentage

Days in Inventory

Go Days in Inventory = 365/Inventory Turnover

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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