This is Retention Ratio Calculator. You can also use it through our mobile application.
The retention ratio is a helpful metric for analysts who want to make sure their company is retaining its customers. It measures how many customers are returning after a certain period of time (usually one year) and compares this number to the number of new customers acquired during that same period.
FAQ
What is the retention ratio formula?
Retention Ratio = Retained Earnings / Net Income: This retention ratio formula requires locating the company’s retained earnings.
What does a high retention ratio mean?
A high retention level indicates that management believes there are uses for the cash internally that provide a rate of return higher than the cost of capital.
Why are retained earnings important?
Retained earnings can help a company increase its stock value, assure organizational sustainability, and provide budgets for important activities like research & development and expansion without increasing your debt.
