{"product_id":"retention-ratio","title":"Retention Ratio Calculator","description":"\u003cstyle\u003e\n.rr-calculator {\n  --ink: #0f172a;\n  --muted: #475569;\n  --border: #e2e8f0;\n  --surface: #ffffff;\n  --tint: #f8fafc;\n  --primary: #1d4ed8;\n  --accent: #c2410c;\n  --accent-hover: #9a3412;\n  --chart-1: #1e40af;\n  --chart-2: #0d9488;\n  --chart-3: #7c3aed;\n  --chart-4: #be185d;\n  --chart-5: #334155;\n  color: var(--ink);\n  font-family: -apple-system, BlinkMacSystemFont, \"Segoe UI\", Roboto, Arial, sans-serif;\n  font-size: 15px;\n  line-height: 1.55;\n  width: 100%;\n  max-width: 1200px;\n  container-type: inline-size;\n  margin: 0 auto;\n}\n.rr-calculator,\n.rr-calculator *,\n.rr-calculator *::before,\n.rr-calculator *::after { box-sizing: border-box; }\n.rr-calculator * { min-width: 0; }\n.rr-calculator a { color: var(--primary); text-decoration-thickness: 1px; text-underline-offset: 3px; }\n.rr-calculator a:hover { text-decoration-thickness: 2px; }\n.rr-calculator button,\n.rr-calculator input { font: inherit; }\n.rr-calculator button { cursor: pointer; }\n.rr-calculator :focus-visible { outline: 3px solid rgba(29, 78, 216, .35); outline-offset: 2px; }\n.rr-shell { display: grid; gap: 24px; }\n.rr-header { border: 1px solid var(--border); background: var(--surface); border-radius: 8px; padding: 24px; box-shadow: 0 1px 2px rgba(15,23,42,.06); }\n.rr-header h2 { margin: 0; font-size: 24px; line-height: 1.25; font-weight: 700; letter-spacing: -.02em; }\n.rr-header p { margin: 8px 0 0; color: var(--muted); max-width: 760px; }\n.rr-pills { display: flex; flex-wrap: wrap; gap: 8px; margin-top: 16px; }\n.rr-pill { display: inline-flex; align-items: center; gap: 6px; min-height: 32px; padding: 6px 10px; border: 1px solid var(--border); border-radius: 999px; background: var(--tint); color: var(--muted); font-size: 13px; font-weight: 500; }\n.rr-pill strong { color: var(--ink); font-variant-numeric: tabular-nums; }\n.rr-toolbar { display: flex; flex-wrap: wrap; gap: 12px; align-items: center; }\n.rr-btn { display: inline-flex; align-items: center; justify-content: center; gap: 10px; min-height: 46px; border-radius: 6px; padding: 12px 18px; border: 1px solid transparent; font-weight: 650; line-height: 1; white-space: nowrap; transition: background-color .15s ease, border-color .15s ease, box-shadow .15s ease, transform .15s ease; }\n.rr-btn:hover { box-shadow: 0 2px 5px rgba(15,23,42,.12); }\n.rr-btn:active { transform: translateY(1px); }\n.rr-download { background: var(--accent); color: #fff; }\n.rr-download:hover { background: var(--accent-hover); }\n.rr-download svg { width: 18px; height: 18px; flex: 0 0 auto; }\n.rr-reset { background: var(--surface); color: var(--ink); border-color: #94a3b8; }\n.rr-reset:hover { background: var(--tint); border-color: #64748b; }\n.rr-workspace { display: grid; grid-template-columns: minmax(0, 1fr); gap: 24px; align-items: start; }\n.rr-card { border: 1px solid var(--border); background: var(--surface); border-radius: 8px; padding: 24px; box-shadow: 0 1px 2px rgba(15,23,42,.06); }\n.rr-card h3 { margin: 0 0 16px; font-size: 18px; line-height: 1.35; font-weight: 650; }\n.rr-card-intro { margin: -8px 0 20px; color: var(--muted); font-size: 13px; }\n.rr-fields { display: grid; grid-template-columns: repeat(2, minmax(0, 1fr)); gap: 16px; }\n.rr-field { display: flex; flex-direction: column; gap: 8px; }\n.rr-field label { font-size: 14px; font-weight: 600; color: var(--ink); }\n.rr-input-wrap { position: relative; }\n.rr-currency { position: absolute; left: 12px; top: 50%; transform: translateY(-50%); color: var(--muted); pointer-events: none; font-weight: 600; }\n.rr-input { width: 100%; height: 46px; border: 1px solid #94a3b8; border-radius: 6px; background: #fff; color: var(--ink); padding: 10px 12px 10px 30px; font-variant-numeric: tabular-nums; }\n.rr-input:hover { border-color: #64748b; }\n.rr-input[aria-invalid=\"true\"] { border-color: #b91c1c; }\n.rr-helper { min-height: 40px; margin: 0; color: var(--muted); font-size: 13px; line-height: 1.45; }\n.rr-error { min-height: 19px; margin: -2px 0 0; color: #b91c1c; font-size: 13px; font-weight: 600; }\n.rr-form-note { margin: 16px 0 0; padding: 10px 12px; background: var(--tint); border: 1px solid var(--border); border-radius: 6px; color: var(--muted); font-size: 13px; }\n.rr-results { display: grid; gap: 16px; }\n.rr-primary-result { padding: 18px; border-radius: 8px; background: #eff6ff; border: 1px solid #bfdbfe; }\n.rr-primary-result span { display: block; color: #1e3a8a; font-size: 13px; font-weight: 650; }\n.rr-primary-result strong { display: block; margin-top: 4px; font-size: 30px; line-height: 1.2; font-weight: 700; color: #172554; font-variant-numeric: tabular-nums; overflow-wrap: anywhere; }\n.rr-result-grid { display: grid; grid-template-columns: repeat(2, minmax(0, 1fr)); gap: 12px; }\n.rr-result-box { padding: 14px; border: 1px solid var(--border); border-radius: 8px; background: var(--tint); }\n.rr-result-box span { display: block; color: var(--muted); font-size: 13px; font-weight: 500; }\n.rr-result-box strong { display: block; margin-top: 4px; font-size: 20px; line-height: 1.3; font-weight: 700; font-variant-numeric: tabular-nums; overflow-wrap: anywhere; }\n.rr-interpretation { margin: 0; padding: 12px; border-left: 4px solid var(--primary); background: var(--tint); color: var(--muted); border-radius: 0 6px 6px 0; font-size: 13px; }\n.rr-chart-card { display: grid; gap: 16px; }\n.rr-chart-head h3 { margin-bottom: 4px; }\n.rr-chart-head p { margin: 0; color: var(--muted); font-size: 13px; }\n.rr-chart-cluster { display: grid; grid-template-columns: minmax(240px, 300px) minmax(260px, 360px); justify-content: center; align-items: center; gap: 24px; max-width: 720px; margin: 0 auto; width: 100%; }\n.rr-plot { display: grid; place-items: center; width: 100%; }\n.rr-chart-svg { display: block; width: min(100%, 280px); height: auto; overflow: visible; }\n.rr-donut-bg { fill: none; stroke: #e2e8f0; stroke-width: 34; }\n.rr-center-label { text-anchor: middle; fill: var(--ink); font-size: 24px; font-weight: 700; font-variant-numeric: tabular-nums; }\n.rr-center-sub { text-anchor: middle; fill: var(--muted); font-size: 13px; font-weight: 500; }\n.rr-legend { display: grid; gap: 10px; align-content: center; }\n.rr-legend-row { display: grid; grid-template-columns: 14px minmax(90px, auto) max-content max-content; align-items: center; justify-content: start; gap: 10px; color: var(--ink); font-size: 13px; }\n.rr-swatch { width: 12px; height: 12px; border-radius: 3px; }\n.rr-legend-name { font-weight: 600; }\n.rr-legend-value,\n.rr-legend-percent { font-variant-numeric: tabular-nums; white-space: nowrap; }\n.rr-legend-percent { color: var(--muted); }\n.rr-chart-callout { margin-top: 16px; padding: 10px 12px; border: 1px solid var(--border); border-radius: 6px; background: var(--tint); color: var(--muted); font-size: 13px; }\n.rr-empty { padding: 14px; border: 1px dashed #94a3b8; border-radius: 6px; background: var(--tint); color: var(--muted); font-size: 13px; text-align: center; }\n.rr-hidden { display: none !important; }\n.rr-table-card h3 { margin-bottom: 6px; }\n.rr-table-intro { margin: 0 0 16px; color: var(--muted); font-size: 13px; }\n.rr-table-wrap { width: 100%; overflow-x: auto; border: 1px solid var(--border); border-radius: 6px; }\n.rr-table { width: 100%; min-width: 560px; border-collapse: collapse; font-size: 14px; }\n.rr-table th,\n.rr-table td { padding: 12px 14px; border-bottom: 1px solid var(--border); text-align: left; vertical-align: top; }\n.rr-table th { background: #0f172a; color: #fff; font-weight: 650; }\n.rr-table td:nth-child(n+2),\n.rr-table th:nth-child(n+2) { text-align: right; font-variant-numeric: tabular-nums; }\n.rr-table tbody tr:last-child td { border-bottom: 0; }\n.rr-table tbody tr:hover { background: #f8fafc; }\n.rr-table-note { margin-top: 16px; padding: 10px 12px; border: 1px solid var(--border); border-radius: 6px; background: var(--tint); color: var(--muted); font-size: 13px; }\n.rr-safe-stack .rr-chart-cluster { grid-template-columns: 1fr; justify-items: center; gap: 20px; }\n.rr-safe-stack .rr-legend { width: min(100%, 380px); }\n.rr-safe-stack .rr-chart-callout { margin-top: 20px; }\n.rr-safe-table-stack .rr-table-note { margin-top: 20px; }\n.rr-education { border-top: 1px solid var(--border); padding-top: 8px; }\n.rr-education h2 { margin: 24px 0 10px; font-size: 21px; line-height: 1.35; font-weight: 700; }\n.rr-education h3 { margin: 20px 0 8px; font-size: 18px; line-height: 1.4; font-weight: 650; }\n.rr-education p { margin: 0 0 12px; color: #334155; }\n.rr-education ul { margin: 0 0 14px; padding-left: 22px; color: #334155; }\n.rr-education li { margin-bottom: 8px; }\n.rr-formula { padding: 14px; border: 1px solid var(--border); border-radius: 6px; background: var(--tint); font-weight: 650; font-variant-numeric: tabular-nums; }\n@container (min-width: 900px) {\n  .rr-workspace { grid-template-columns: minmax(0, 1fr) minmax(0, 1fr); }\n}\n\n@container (max-width: 639px) {\n  .rr-header,\n  .rr-card { padding: 16px; }\n  .rr-fields,\n  .rr-result-grid { grid-template-columns: 1fr; }\n  .rr-toolbar { align-items: stretch; }\n  .rr-btn { flex: 1 1 auto; }\n  .rr-chart-cluster { grid-template-columns: 1fr; justify-items: center; gap: 20px; }\n  .rr-legend { width: 100%; }\n  .rr-legend-row { grid-template-columns: 14px minmax(80px, auto) max-content; gap: 8px; }\n  .rr-legend-percent { grid-column: 2 \/ span 2; padding-left: 0; }\n  .rr-chart-callout,\n  .rr-table-note { margin-top: 16px; }\n}\n@container (max-width: 359px) {\n  .rr-header,\n  .rr-card { padding: 12px; }\n  .rr-btn { width: 100%; }\n  .rr-primary-result strong { font-size: 27px; }\n  .rr-chart-callout,\n  .rr-table-note { margin-top: 12px; }\n}\n@media (max-width: 899px) {\n  .rr-workspace { grid-template-columns: 1fr; }\n}\n@media (max-width: 639px) {\n  .rr-header,\n  .rr-card { padding: 16px; }\n  .rr-fields,\n  .rr-result-grid { grid-template-columns: 1fr; }\n  .rr-toolbar { align-items: stretch; }\n  .rr-btn { flex: 1 1 auto; }\n  .rr-chart-cluster { grid-template-columns: 1fr; justify-items: center; gap: 20px; }\n  .rr-legend { width: 100%; }\n  .rr-legend-row { grid-template-columns: 14px minmax(80px, auto) max-content; gap: 8px; }\n  .rr-legend-percent { grid-column: 2 \/ span 2; padding-left: 0; }\n  .rr-chart-callout,\n  .rr-table-note { margin-top: 16px; }\n}\n@media (max-width: 359px) {\n  .rr-header,\n  .rr-card { padding: 12px; }\n  .rr-btn { width: 100%; }\n  .rr-primary-result strong { font-size: 27px; }\n  .rr-chart-callout,\n  .rr-table-note { margin-top: 12px; }\n}\n@media (prefers-reduced-motion: reduce) {\n  .rr-calculator * { scroll-behavior: auto !important; transition: none !important; }\n}\n\u003c\/style\u003e\n\u003cdiv class=\"rr-calculator\" data-calculator-root\u003e\n  \u003cdiv class=\"rr-shell\"\u003e\n    \u003csection class=\"rr-header\" aria-labelledby=\"rr-title\"\u003e\n      \u003ch2 id=\"rr-title\"\u003eRetention Ratio Calculator\u003c\/h2\u003e\n      \u003cp\u003eMeasure how much of a company’s net income is retained for reinvestment after dividends are paid.\u003c\/p\u003e\n      \u003cdiv class=\"rr-pills\" aria-label=\"Live calculation summary\"\u003e\n        \u003cspan class=\"rr-pill\"\u003eRetention ratio \u003cstrong data-rr-pill-ratio\u003e65.00%\u003c\/strong\u003e\u003c\/span\u003e\n        \u003cspan class=\"rr-pill\"\u003eRetained earnings \u003cstrong data-rr-pill-retained\u003e$650,000.00\u003c\/strong\u003e\u003c\/span\u003e\n        \u003cspan class=\"rr-pill\"\u003eDividend payout \u003cstrong data-rr-pill-payout\u003e35.00%\u003c\/strong\u003e\u003c\/span\u003e\n      \u003c\/div\u003e\n    \u003c\/section\u003e\n\n    \u003cdiv class=\"rr-toolbar\" aria-label=\"Calculator actions\"\u003e\n      \u003cbutton class=\"rr-btn rr-download\" type=\"button\" data-rr-download\u003e\n        \u003csvg viewbox=\"0 0 24 24\" aria-hidden=\"true\" focusable=\"false\"\u003e\u003cpath fill=\"currentColor\" d=\"M5 20h14v-2H5v2Zm7-18a1 1 0 0 0-1 1v9.59L7.71 9.3 6.3 10.71l5 5a1 1 0 0 0 1.4 0l5-5-1.41-1.41L13 12.59V3a1 1 0 0 0-1-1Z\"\u003e\u003c\/path\u003e\u003c\/svg\u003e\n        \u003cspan\u003eDownload Excel\u003c\/span\u003e\n      \u003c\/button\u003e\n      \u003cbutton class=\"rr-btn rr-reset\" type=\"button\" data-rr-reset\u003eReset\u003c\/button\u003e\n    \u003c\/div\u003e\n\n    \u003cdiv class=\"rr-workspace\"\u003e\n      \u003csection class=\"rr-card\" aria-labelledby=\"rr-inputs-title\"\u003e\n        \u003ch3 id=\"rr-inputs-title\"\u003eCompany earnings inputs\u003c\/h3\u003e\n        \u003cp class=\"rr-card-intro\"\u003eEnter values for the same reporting period and use cash dividends attributable to common shareholders.\u003c\/p\u003e\n        \u003cdiv class=\"rr-fields\"\u003e\n          \u003cdiv class=\"rr-field\"\u003e\n            \u003clabel for=\"rr-net-income\"\u003eNet income\u003c\/label\u003e\n            \u003cdiv class=\"rr-input-wrap\"\u003e\n              \u003cspan class=\"rr-currency\" aria-hidden=\"true\"\u003e$\u003c\/span\u003e\n              \u003cinput class=\"rr-input\" id=\"rr-net-income\" data-rr-input=\"netIncome\" type=\"text\" inputmode=\"decimal\" autocomplete=\"off\" value=\"1,000,000.00\" aria-describedby=\"rr-net-income-help rr-net-income-error\"\u003e\n            \u003c\/div\u003e\n            \u003cp class=\"rr-helper\" id=\"rr-net-income-help\"\u003eProfit after expenses, interest, and taxes for the selected period.\u003c\/p\u003e\n            \u003cp class=\"rr-error\" id=\"rr-net-income-error\" data-rr-error=\"netIncome\" aria-live=\"polite\"\u003e\u003c\/p\u003e\n          \u003c\/div\u003e\n          \u003cdiv class=\"rr-field\"\u003e\n            \u003clabel for=\"rr-dividends\"\u003eDividends paid\u003c\/label\u003e\n            \u003cdiv class=\"rr-input-wrap\"\u003e\n              \u003cspan class=\"rr-currency\" aria-hidden=\"true\"\u003e$\u003c\/span\u003e\n              \u003cinput class=\"rr-input\" id=\"rr-dividends\" data-rr-input=\"dividends\" type=\"text\" inputmode=\"decimal\" autocomplete=\"off\" value=\"350,000.00\" aria-describedby=\"rr-dividends-help rr-dividends-error\"\u003e\n            \u003c\/div\u003e\n            \u003cp class=\"rr-helper\" id=\"rr-dividends-help\"\u003eCash dividends distributed from earnings during the same period.\u003c\/p\u003e\n            \u003cp class=\"rr-error\" id=\"rr-dividends-error\" data-rr-error=\"dividends\" aria-live=\"polite\"\u003e\u003c\/p\u003e\n          \u003c\/div\u003e\n        \u003c\/div\u003e\n        \u003cp class=\"rr-form-note\"\u003eThe calculator accepts commas, currency symbols, spaces, and decimal values. Dividends cannot be negative.\u003c\/p\u003e\n      \u003c\/section\u003e\n\n      \u003csection class=\"rr-card rr-results\" aria-labelledby=\"rr-results-title\"\u003e\n        \u003ch3 id=\"rr-results-title\"\u003eLive results\u003c\/h3\u003e\n        \u003cdiv class=\"rr-primary-result\" aria-live=\"polite\" aria-atomic=\"true\"\u003e\n          \u003cspan\u003eRetention ratio\u003c\/span\u003e\n          \u003cstrong data-rr-ratio\u003e65.00%\u003c\/strong\u003e\n        \u003c\/div\u003e\n        \u003cdiv class=\"rr-result-grid\"\u003e\n          \u003cdiv class=\"rr-result-box\"\u003e\n\u003cspan\u003eRetained earnings\u003c\/span\u003e\u003cstrong data-rr-retained\u003e$650,000.00\u003c\/strong\u003e\n\u003c\/div\u003e\n          \u003cdiv class=\"rr-result-box\"\u003e\n\u003cspan\u003eDividend payout ratio\u003c\/span\u003e\u003cstrong data-rr-payout\u003e35.00%\u003c\/strong\u003e\n\u003c\/div\u003e\n          \u003cdiv class=\"rr-result-box\"\u003e\n\u003cspan\u003eNet income\u003c\/span\u003e\u003cstrong data-rr-income\u003e$1,000,000.00\u003c\/strong\u003e\n\u003c\/div\u003e\n          \u003cdiv class=\"rr-result-box\"\u003e\n\u003cspan\u003eDividends paid\u003c\/span\u003e\u003cstrong data-rr-dividends\u003e$350,000.00\u003c\/strong\u003e\n\u003c\/div\u003e\n        \u003c\/div\u003e\n        \u003cp class=\"rr-interpretation\" data-rr-interpretation\u003eThe company retains 65.00% of net income and distributes 35.00% as dividends.\u003c\/p\u003e\n      \u003c\/section\u003e\n    \u003c\/div\u003e\n\n    \u003csection class=\"rr-card rr-chart-card\" data-rr-chart-card aria-labelledby=\"rr-chart-title\"\u003e\n      \u003cdiv class=\"rr-chart-head\"\u003e\n        \u003ch3 id=\"rr-chart-title\"\u003eEarnings allocation\u003c\/h3\u003e\n        \u003cp data-rr-chart-intro\u003eHow positive net income is split between retained earnings and dividends.\u003c\/p\u003e\n      \u003c\/div\u003e\n      \u003cdiv class=\"rr-chart-cluster\" data-rr-chart-cluster\u003e\n        \u003cdiv class=\"rr-plot\" data-rr-plot\u003e\n          \u003csvg class=\"rr-chart-svg\" data-rr-svg viewbox=\"0 0 260 260\" role=\"img\" aria-labelledby=\"rr-chart-svg-title rr-chart-svg-desc\"\u003e\n            \u003ctitle id=\"rr-chart-svg-title\"\u003eEarnings allocation donut chart\u003c\/title\u003e\n            \u003cdesc id=\"rr-chart-svg-desc\" data-rr-chart-desc\u003eRetained earnings are $650,000.00, or 65.00%. Dividends paid are $350,000.00, or 35.00%.\u003c\/desc\u003e\n            \u003ccircle class=\"rr-donut-bg\" cx=\"130\" cy=\"130\" r=\"92\"\u003e\u003c\/circle\u003e\n            \u003cg data-rr-segments\u003e\u003c\/g\u003e\n            \u003ctext class=\"rr-center-label\" x=\"130\" y=\"126\" data-rr-center\u003e65.00%\u003c\/text\u003e\n            \u003ctext class=\"rr-center-sub\" x=\"130\" y=\"149\"\u003eretained\u003c\/text\u003e\n          \u003c\/svg\u003e\n          \u003cdiv class=\"rr-empty rr-hidden\" data-rr-chart-empty\u003eEnter positive net income and nonnegative dividends not exceeding net income to see the allocation chart.\u003c\/div\u003e\n        \u003c\/div\u003e\n        \u003cdiv class=\"rr-legend\" data-rr-legend aria-label=\"Earnings allocation legend\"\u003e\u003c\/div\u003e\n      \u003c\/div\u003e\n      \u003cdiv class=\"rr-chart-callout\" data-rr-chart-caption\u003eOf each $1.00 earned, $0.65 remains in the business and $0.35 is distributed.\u003c\/div\u003e\n      \u003cdiv class=\"rr-table-wrap\" data-rr-chart-table-wrap\u003e\n        \u003ctable class=\"rr-table\" aria-label=\"Earnings allocation data\"\u003e\n          \u003cthead\u003e\u003ctr\u003e\n\u003cth\u003eAllocation\u003c\/th\u003e\n\u003cth\u003eAmount\u003c\/th\u003e\n\u003cth\u003eShare of net income\u003c\/th\u003e\n\u003c\/tr\u003e\u003c\/thead\u003e\n          \u003ctbody data-rr-chart-table\u003e\u003c\/tbody\u003e\n        \u003c\/table\u003e\n      \u003c\/div\u003e\n    \u003c\/section\u003e\n\n    \u003csection class=\"rr-card rr-table-card\" data-rr-table-card aria-labelledby=\"rr-detail-title\"\u003e\n      \u003ch3 id=\"rr-detail-title\"\u003eCalculation detail\u003c\/h3\u003e\n      \u003cp class=\"rr-table-intro\"\u003eThe table cross-checks the formula and shows how each reported amount contributes to the result.\u003c\/p\u003e\n      \u003cdiv class=\"rr-table-wrap\" data-rr-detail-wrap\u003e\n        \u003ctable class=\"rr-table\" aria-label=\"Retention ratio calculation detail\"\u003e\n          \u003cthead\u003e\u003ctr\u003e\n\u003cth\u003eMetric\u003c\/th\u003e\n\u003cth\u003eValue\u003c\/th\u003e\n\u003cth\u003eFormula or interpretation\u003c\/th\u003e\n\u003c\/tr\u003e\u003c\/thead\u003e\n          \u003ctbody data-rr-detail-table\u003e\u003c\/tbody\u003e\n        \u003c\/table\u003e\n      \u003c\/div\u003e\n      \u003cdiv class=\"rr-table-note\" data-rr-table-note\u003eRetention ratio is undefined when net income is zero. A negative ratio or a ratio above 100% usually indicates a loss, dividend payments above current-period profit, or other circumstances requiring financial-statement context.\u003c\/div\u003e\n    \u003c\/section\u003e\n\n    \u003csection class=\"rr-education\" aria-labelledby=\"rr-guide-title\"\u003e\n      \u003ch2 id=\"rr-guide-title\"\u003eHow to use and interpret the retention ratio\u003c\/h2\u003e\n      \u003cp\u003eThe retention ratio, also called the plowback ratio, estimates the percentage of net income a company keeps rather than distributes as dividends. It is a compact way to describe earnings allocation, but it is not a stand-alone measure of management quality or future performance. A high ratio may support expansion when the company has attractive projects; the same ratio can destroy value when retained cash earns weak returns.\u003c\/p\u003e\n\n      \u003ch3\u003eWhat should you enter?\u003c\/h3\u003e\n      \u003cp\u003e\u003cstrong\u003eNet income\u003c\/strong\u003e is the bottom-line profit for a defined reporting period, normally a quarter or fiscal year. Use the amount attributable to the shareholder group you are analyzing and keep the period consistent with dividends. Positive net income produces the most intuitive ratio. A zero value makes the ratio mathematically undefined, while a loss can create a technically calculable but economically difficult-to-interpret result.\u003c\/p\u003e\n      \u003cp\u003e\u003cstrong\u003eDividends paid\u003c\/strong\u003e should represent cash dividends associated with the same period and shareholder class. Enter zero when no dividend was paid. A higher dividend amount reduces retained earnings and the retention ratio. Do not enter share repurchases here: buybacks are another form of capital return, but they are not part of the standard retention-ratio formula. The \u003ca href=\"https:\/\/www.sec.gov\/edgar\/search\/\" target=\"_blank\" rel=\"noopener noreferrer\"\u003eSEC EDGAR database\u003c\/a\u003e is a practical source for company filings that disclose net income and dividend information.\u003c\/p\u003e\n\n      \u003ch3\u003eHow is the result calculated?\u003c\/h3\u003e\n      \u003cp class=\"rr-formula\"\u003eRetained earnings for the period = Net income − Dividends paid\u003cbr\u003eRetention ratio = Retained earnings for the period ÷ Net income\u003c\/p\u003e\n      \u003cp\u003eWith the example values of $1,000,000 in net income and $350,000 in dividends, retained earnings are $650,000 and the retention ratio is 65%. The dividend payout ratio is the complementary 35%. When net income is positive and dividends are between zero and net income, the two percentages add to 100%.\u003c\/p\u003e\n\n      \u003ch3\u003eWhat do the outputs mean?\u003c\/h3\u003e\n      \u003cp\u003e\u003cstrong\u003eRetention ratio\u003c\/strong\u003e is the primary result. A value of 65% means the company keeps $0.65 of each $1.00 of net income. A ratio near 100% indicates little or no dividend distribution. A ratio near 0% indicates that nearly all current profit is paid out. A negative ratio can occur when dividends exceed current-period profit. A ratio above 100% can occur when net income is negative and the arithmetic produces a positive percentage, so the interpretation line and underlying statements matter.\u003c\/p\u003e\n      \u003cp\u003e\u003cstrong\u003eRetained earnings\u003c\/strong\u003e in this calculator means current-period profit left after dividends, not the cumulative retained-earnings balance reported in shareholders’ equity. That cumulative balance also reflects prior years, losses, and accounting adjustments. \u003cstrong\u003eDividend payout ratio\u003c\/strong\u003e is dividends divided by net income and helps verify the allocation. The chart displays retained earnings and dividends only when both are nonnegative parts of positive net income; otherwise it switches to an explanatory empty state rather than drawing misleading geometry.\u003c\/p\u003e\n\n      \u003ch3\u003eHow should a high or low ratio be evaluated?\u003c\/h3\u003e\n      \u003cp\u003eGrowth-stage businesses often retain a large share of earnings because they can deploy capital into new products, capacity, hiring, or acquisitions. Mature businesses may distribute more because their reinvestment opportunities are limited. Neither pattern is automatically superior. Compare the ratio with return on equity, return on invested capital, cash-flow conversion, leverage, and the company’s historical capital-allocation record. Investor.gov’s overview of \u003ca href=\"https:\/\/www.investor.gov\/introduction-investing\/investing-basics\/investment-products\/stocks\" target=\"_blank\" rel=\"noopener noreferrer\"\u003estocks and shareholder ownership\u003c\/a\u003e provides useful background on how shareholders participate in corporate profits and risks.\u003c\/p\u003e\n      \u003cp\u003eA useful next step is to compare retention with sustainable growth. In a simplified framework, sustainable growth is approximately retention ratio multiplied by return on equity. That relationship assumes profitability and financial structure remain reasonably stable, so it should be treated as a diagnostic rather than a forecast. The \u003ca href=\"https:\/\/pages.stern.nyu.edu\/~adamodar\/\" target=\"_blank\" rel=\"noopener noreferrer\"\u003eNYU Stern valuation resources\u003c\/a\u003e discuss reinvestment, returns, and growth in greater depth.\u003c\/p\u003e\n\n      \u003ch3\u003eCommon mistakes and practical checks\u003c\/h3\u003e\n      \u003cul\u003e\n        \u003cli\u003eMixing annual net income with quarterly dividends, which makes the ratio incomparable.\u003c\/li\u003e\n        \u003cli\u003eUsing total dividends declared for a different period instead of dividends associated with the analyzed earnings period.\u003c\/li\u003e\n        \u003cli\u003eConfusing current-period retained profit with the cumulative retained-earnings account on the balance sheet.\u003c\/li\u003e\n        \u003cli\u003eAssuming a high ratio guarantees high growth without testing whether reinvested funds earn attractive returns.\u003c\/li\u003e\n        \u003cli\u003eIgnoring special dividends, preferred dividends, noncontrolling interests, or one-time accounting gains and losses.\u003c\/li\u003e\n      \u003c\/ul\u003e\n      \u003cp\u003eUse the downloadable workbook to preserve the current assumptions, outputs, allocation breakdown, and interpretation notes. For audited or regulated analysis, reconcile every input to the relevant filing and accounting policy. This calculator is educational and does not provide personalized investment, tax, legal, or accounting advice.\u003c\/p\u003e\n    \u003c\/section\u003e\n  \u003c\/div\u003e\n\u003c\/div\u003e","brand":"FinancialModelsLab","offers":[{"title":"Default Title","offer_id":49909490712819,"sku":"retention-ratio","price":0.0,"currency_code":"USD","in_stock":true}],"thumbnail_url":"\/\/cdn.shopify.com\/s\/files\/1\/0522\/6191\/2762\/files\/retention-ratio.webp?v=1783935605","url":"https:\/\/financialmodelslab.com\/products\/retention-ratio","provider":"Financial Models Lab","version":"1.0","type":"link"}