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Quantitative Finance · शब्दावली

Retention ratio क्या है?

Definition 2.3 The Desk and the Firm · अध्याय 2 — The Proprietary Market-Making Firm

A firm’s retention ratio is the share of a year’s profit it keeps as capital instead of distributing to its owners; one minus it is the payout ratio.

उदाहरण

Example 2.2 (An allocation)

Four members hold 40, 30, 20 and 10 points and draw 80% of their allocations. A year’s profit of $116.25 million allocates $46.5 million to the first; she draws $37.2 million and $9.3 million stays in her capital account. In all the members draw $93.0 million and leave $23.25 million, a retention ratio of 20%.

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