retention ratio Meaning in the Cambridge English Dictionary Cambridge dictionaries logo

Meaning of “retention ratio” in the English Dictionary

"retention ratio" in Business English

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retention rationoun [S]

uk   us   ACCOUNTING, FINANCE
the ​percentage of a company's ​profits that it decides to ​keep, rather than ​paying it to the ​shareholders as a dividend (= ​part of the ​profit that is ​paid to ​shareholders): The ​higher the ​retentionratio (i.e. the ​lower the ​dividendpayoutratio), the ​higher the ​growthrate and ​vice versa.
(Definition of retention ratio from the Cambridge Business English Dictionary © Cambridge University Press)
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