Retention Ratio The percent of earnings credited to retained earnings. In other words, the proportion of net income that is not paid out as dividends.
Calculated as:
Investopedia Says: The retention ratio is the opposite of the dividend payout ratio. In fact, it can also be calculated as one minus the dividend payout ratio. Related Terms: Dividend Payout Ratio Earnings Earnings Per Share - EPS Payout Ratio Retained Earnings |