Retention Ratio: Definition, Formula, Limitations, and Example
When a company loses money or pays dividends, it also loses its retained earnings. This is the company’s reserve money that management can reinvest into the business. Retained earnings refer to a company’s net earnings after they pay dividends. Retained Earnings Formula and Calculation Since price-to-earnings (P/E) ratios cannot be used to value unprofitable companies, alternative Read more about Retention Ratio: Definition, Formula, Limitations, and Example[…]