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 overall premium retention ratio for the company increased to 51 per cent for the first half of 2015 compared to 46 per cent for the first half of 2014, the company said.
Requiring a meaningful share retention ratio for shares received by senior executives from the company's equity compensation plans will better align the interests of executives with the interests of shareholders and the company.
Cypress Executive Center s higher-than-average retention ratio is a testament to its outstanding location, proximity to local area amenities and overall quality, says Mandel.
After USAID's interventions targeted at the female staff of DISCOs, women are now aware of career paths in the energy sector and the retention ratio of these employees have greatly increased as more women are now seeking a career in the power distribution business.
Fitch expects operating earnings-based interest and preferred dividend coverage to remain at or above 10x, and for ACE's retention ratio (net premium written to gross premium written) to increase over time to be more in line with higher-rated peers.
The overall retention ratio has increased to 45 per cent for the period ended 31 March 2011 compared to 35 per cent during the same period last year," the statement said.
The reinsurance ratio has gonedown from 66% in 1Q2010 to 54% in2Q2010, the decline in ratio is due tounderwriting of medical policies whichhave higher retention ratio as comparedto any other segment.
The average retention ratio for both small and large agencies across the country is approximately 88 percent.
This underwriting effort coupled with sustained support from brokers and partners resulted in a customer retention ratio of 94 per cent for large strategic clients, the official added.
The growth in net premiums is driven by increasing retention ratio from 38.
Compared with 2007, the overall retention ratio edged up slightly, from 70.