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Retention ratio: How do you calculate it in excel?

Asked 3 years ago

What is the average retention ratio, and what formula do I use to calculate it in excel?

Emilė Kleopatra Miežlaiškytė

Friday, November 12, 2021

The average retention ratio ranges from 20% to 25%, but it can vary based on the industry that you're in. It's calculated by dividing retained earnings by the total net income. You can find plenty of excel templates and an expanded version of the formula online.

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