Retention Ratio Calculator

Updated: Jun 10, 2018

Retention Ratio Calculator is a tool that calculates the percentage of net income that is retained to grow the business, rather than being paid out as dividends

Retention Ratio:
Background Information

What does Retention Ratio mean?
The retention ratio is also referred to as the plowback ratio. It is the amount of retained earnings relative to earnings. The earnings can be referred to as net income and are found on the income statement.
Retention Ratio = 1 – (Dividends per share / EPS)

A company declared $0.84 semi-annual cash dividend per share to shareholders of record December, 12, to be paid January, 12. As of the fiscal year ended September 30, 2017, the company's EPS equals $5.73.

According, to the formula, Retention Ratio is:-

  • = 1 - ($0.84 / $5.73)
  • = 0.8534, or 85.34%


You may also like...

Acid Test Ratio Calculator

Compute the quick or acid test ratio needed to run a business

View Tool

Average Collection Period Calculator

Determine the amount of time a business takes to receive payments

View Tool

Cash Flow Margin Calculator

Measure cash from operating activities as a percentage of sales revenue in a given period

View Tool

Comments 0


Jun 10, 2018
Tool Launched