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 Insurance Market Review 2017 "14th Edition", issued by CMA, highlighted the key events of the insurance sector in 2017, covering indicators such as premiums, indemnities, number of policies, retention ratios, losses and financial indices of insurers, and their operational performances during the year.
The [[epsilon].sub.b] (t) values were converted to retention ratios [[[epsilon].sub.b] (t)/[[epsilon].sub.b] (0) x 100] as shown in Fig.
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.
The rapport pitch takes effort and time, but the reward of excellent retention ratios is well worth it.
Structural issues such as a fragmented market and low retention ratios will, however, continue to undermine the sector's upside potential.
Most of the non-life insurers are tiny companies with low retention ratios and low pricing power.
* The capital structure and profit retention ratios are constant, and no new equity is issued.
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.
The lowest retention ratios were for aviation insurance and energy insurance of 3.1 percent and 0.8 percent, respectively.
This question was addressed using directional t-tests to compare the mean baseline and retention ratios against a theoretical population value of 1.00.
The E/L copper retention ratios continuously decreased, in the stake center as the inhibited drying period increased from 0 to 8 days.