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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In terms of reinsurance purchasing, retention ratios vary widely and are driven by market and company size.
The stress retention ratios measured at 1000 min of the samples were listed in Table 5 and compared with their [[[bar].
The Apartment Home Living Premium Apartment Manager Program includes a portfolio of personalized flyers, forms, digital brochures, videos and other tools to help apartment managers increase closing and retention ratios.
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.
Because changes to accounting rules over the last five years now require significant write-offs for loans paid off earlier than anticipated, the price of extremely low retention ratios is no longer simply lower profitability--it may well be extinction.
Incorporate retention ratios for stock earned through incentive or equity plans.
This reflects the country's oil and gas risks, which result in very volatile growth in gross premiums written and low retention ratios.
With broad-based rate increases across the industry, retention ratios should remain stable, Moody's adds.