earnings retention ratio

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Earnings retention ratio

Earnings Retention Ratio

The percentage of a publicly-traded company's post-tax earnings that are not paid in dividends. Most earnings retained are re-invested into the company's operations. Tracking year-on-year earnings retention ratios is important to fundamental analysis to investigate whether a company is increasing or decreasing its rate of re-investment. The earnings retentions ratio is calculated thusly:

Earnings retention ratio = (Net income - dividends) / Net income

For example, a company with a net income of $10 million that pays out $3.5 million in dividends has an earnings retention ratio of (10 million - 3.5 million) / 10 million = 65%. It is also called simply the retention ratio.

earnings retention ratio

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The retention ratios have been calculated as ratio of net earned premium and gross earned premium.
Retention ratios in motor insurance were the highest among di erent types of insurance, recording 88 per cent for comprehensive insurance and 84 per cent for third party insurance.
Retention ratios are low: the insurers lay off a lot of the risks underwritten with the global reinsurance industry.
Structural issues such as a fragmented market and low retention ratios will, however, continue to undermine the sector's upside potential.
In terms of reinsurance purchasing, retention ratios vary widely and are driven by market and company size.
Most of the non-life insurers are tiny companies with low retention ratios and low pricing power.
The stress retention ratios measured at 1000 min of the samples were listed in Table 5 and compared with their [[[bar].
Common sense dictates that if you improve your internal relationships with producers and staff, you create a potential win-win situation, higher retention ratios and less exposure to litigation.
In 2007, the retention ratios for motor and health insurance were 94 percent and 78 percent, respectively.
This question was addressed using directional t-tests to compare the mean baseline and retention ratios against a theoretical population value of 1.
The E/L copper retention ratios continuously decreased, in the stake center as the inhibited drying period increased from 0 to 8 days.
A few simple steps could substantially increase retention ratios.