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Softusvista Office (Pune), India
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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 2 Variables
Variables Used
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 00.001 seconds)
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retention_ratio = (Net Income-Dividend)/Net Income Go
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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 and 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) and 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 and 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) and Dividend (D). With our tool, you need to enter the respective value for Net Income and Dividend and hit the calculate button. You can also select the units (if any) for Input(s) and the Output as well.
How many ways are there to calculate Retention Ratio?
In this formula, Retention Ratio uses Net Income and Dividend. We can use 10 other way(s) to calculate the same, which is/are as follows -
  • contribution_margin_per_unit = Sales Price per Unit-Variable Cost per Unit
  • diluted_earnings_per_share = Net Income/(Average Shares+Other Convertible Securities)
  • days_in_inventory = 365/Inventory Turnover
  • debt_coverage_ratio = Net Operating Income/Debt Service
  • dividends_per_share = Total Dividends/Number of Shares
  • estimated_earnings = Forecasted Sales-Forecasted Expense
  • preferred_stock = Dividend/Discount Rate
  • retention_ratio = (Net Income-Dividend)/Net Income
  • return_on_capital_employed = (Earnings Before Interest and Taxes/(Total Assets-Current Liabilities))*100
  • solvency_ratio = (Shareholders Fund*100)/Total Assets
Where is the Retention Ratio calculator used?
Among many, Retention Ratio calculator is widely used in real life applications like {FormulaUses}. Here are few more real life examples -
{FormulaExamplesList}
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