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Definition: Retention Ratio is a financial indicator that quantifies the proportion of earnings that are kept by a firm for internal use (to be reinvested or perhaps for tax benefits) rather than being distributed as dividends to shareholders. |
More on financial ratios: Cash Ratio, Interest Coverage Ratio, Quick Ratio. MBA Brief provides concise yet precise definitions of organizational concepts, management methods, and business models as taught in an MBA program. We keep it short and provide links to high-quality websites where you can learn more about your topic.
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