What is the retention ratio?
Most often, the retention ratio covers the percentage of earnings of the company that are not paid as dividends to shareholders and is detained by the company. Revenues that are reinvested in business are called undivided profits or detained capital. To calculate the ratio, the person can deduct dividends from the company's net income and divide this sum with net income.
Investors are interested in learning the company's retention, because a higher ratio means that more money is returned to society. This may mean that society is ready for growth. Entrepreneurs can also be kept back to pay planned expenses such as buying a building or new equipment. Since the money is plowed back into business, this percentage is sometimes called the Plowback ratio. This growth rate is determined by multiplying Ratio's return. You can usually find the return on your own capital in the company's annual report. Maximum Maximum Sustainable Growth Rate can be Factorm when the investor decides whether to invest in a particular company. Investors looking for stocks to provide income generally are looking for companies with lower conditions. Companies with the history of such low numbers usually try to maintain these conditions because investors come to expect dividends every year.
The term may also apply to customers' preservation or preserving insurance. When this number is applied to customers, there is a percentage of those who buy products and services from a particular company. A high figure can indicate quality goods or services. In other words, a high customer ratio equals satisfied customers.
The ratio of insurance retention is the amount of business an anporal company is retained. This is calculated on the basis of an premium or amount that each person pays for insurance coverage. Pay bonuses represent sales. In insurance is this procedual ratioNto invoiced or written bonuses compared to the number of bonuses that are actually paid, called gross premiums.
While the number can refer to different numbers in different industries, it maintains a common topic. Retention concerns something that the society maintains. Retention may apply to sales, customers or earnings depending on the context in which the ratio is used.