What is the formula for calculating the retention ratio?
Asked 4 years ago
What is a good retention ratio and how do I calculate it?
Gareth Browne
Friday, November 12, 2021
Retention rate is calculated by:
Subtracting the dividends distributed during the period from the net income and dividing the difference by the net income for the year.
A good rate is highly variable by industry, there is no set standard for it. A 100% retention rate is good, while a 15% retention rate is generally bad. A good rate is as high as you can get it to go.
Please follow our Community Guidelines
Related Articles
Email Marketing Best Practices—How to Improve Your ROI
BeProfit Staff
April 26, 2023
5 Ways to Boost Product Profitability for Your E-commerce Store
Ali Shah
February 22, 2023
CPC Industry Benchmarks: Are You Spending Too Much?
Luis Velez Torres
April 24, 2023
Related Posts
Can't find what you're looking for?