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| Name | Retention Ratio Formula | How to Calculate Retention Ratio? (Examples) |
| Video Uploader | Video From WallStreetMojo |
| Upload Date | This Video Uploaded At 15-06-2019 12:26:20 |
| Video Discription | In this video we will understand what is Retention Ratio? its formula, calculation along with practical examples. ๐๐ก๐๐ญ ๐ข๐ฌ ๐๐๐ญ๐๐ง๐ญ๐ข๐จ๐ง ๐๐๐ญ๐ข๐จ ๐ ๐จ๐ซ๐ฆ๐ฎ๐ฅ๐? ---------------------------------------------------------- The formula for the retention ratio clearly shows the percentage of earnings of a company that is not paid out as dividends but credited back as retained earnings. ๐๐๐ญ๐๐ง๐ญ๐ข๐จ๐ง ๐๐๐ญ๐ข๐จ ๐ ๐จ๐ซ๐ฆ๐ฎ๐ฅ๐ -------------------------------------------- Retention Ratio = Retained Earnings / Net Income OR Retention Ratio = 1- Dividend Payout Ratio ๐๐ฌ๐๐ฌ ๐จ๐ ๐๐๐ญ๐๐ง๐ญ๐ข๐จ๐ง ๐๐๐ญ๐ข๐จ ๐ ๐จ๐ซ๐ฆ๐ฎ๐ฅ๐ ---------------------------------------------------------- #1 - It is very easy to calculate and suitable for comparing the ball park between companies / sectors. #2 - The ratio can work together with the dividend payment ratio in order to plan the company's future ideas. ๐๐๐ญ๐๐ง๐ญ๐ข๐จ๐ง ๐๐๐ญ๐ข๐จ ๐ ๐จ๐ซ๐ฆ๐ฎ๐ฅ๐ ๐๐ฑ๐๐ฆ๐ฉ๐ฅ๐ -------------------------------------------------------------- The firm B reported earnings of $100 per share and decided to pay $6 in dividends. The dividend payment ratio for the above formula is: $6/$100= 17%. Firm ' B' distributed 17 % of its income in dividends and invested the remaining portion back into the company, i.e. 83% of the money was plowed back into the company. By using above formula we get, Retention = 1 โ ($6/ $100) = 1- 0.17= 0.83 = 83%. To know more about ๐๐๐ญ๐๐ง๐ญ๐ข๐จ๐ง ๐๐๐ญ๐ข๐จ ๐ ๐จ๐ซ๐ฆ๐ฎ๐ฅ๐, you can go to this ๐ฅ๐ข๐ง๐ค ๐ก๐๐ซ๐: https://www.wallstreetmojo.com/retention-ratio/ Subscribe to our channel to get new updated videos. Click the button above to subscribe or click on the link below to subscribe - https://www.youtube.com/channel/UChlNXSK2tC9SJ2Fhhb2kOUw?sub_confirmation=1 |
| Category | Education |
| Tags | retention ratio formula | retention ratio | retention ratio calculation | earning retention ratio | example of retention ratio |
