How to Use Retention Ratio: An Example An example illustrates how the retention ratio applies in analysis. Suppose two firms, Company X and Company Y, each report $50 million in net income.

Bank A's resulting capital-to-risk weighted assets ratio is calculated by entering the formula "=(B2+B3)/B4)" into cell B5. See below for an example: This ratio determines whether financial ...

The retention ratio measures the percentage of a company’s earnings that are reinvested rather than distributed as dividends.

A bank's risk-weighted assets are its assets, weighted by their riskiness, that are used to determine the minimum amount of capital that must be held to reduce its risk of insolvency. The formula for ...