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Dictionary by pitch.dog
Financial ratios & operating efficiency · Specialist

Retention ratio

Also called: plowback ratio

ELI5

Earnings retained after dividends divided by earnings.

Used in conversation

“Keep retention ratio on the dashboard, but show the definition and reporting period beside it.”

Pitch context

You will see “Retention ratio” in financial models, budgets, board packs and investor materials when the discussion reaches financial ratios & operating efficiency.

Why it matters: In financial ratios & operating efficiency, different calculation boundaries, periods or accounting treatments can change the number and the decision.

Caution

Calculation, recognition and disclosure can vary by accounting framework, company policy and reporting context.

When the words have to travel

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Sources & evidence · 5

Direct term-level sources and supporting source families.