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
Simplest Way to Install and Use TikTok Pixel on Shopify
Brody Hall
August 4, 2022
Are Pinterest Ads Worth It for E-Commerce Sellers in 2023?
Rebekah Brace
October 31, 2022
Perpetual vs Periodic Inventory Systems: Which Is Best for Your E-commerce Business?
Adeel Qayum
March 30, 2023
Related Posts
Can't find what you're looking for?