Retained Earnings to Total Assets

Quick Definition

Measures how successful a company is at accumulating assets through retained earnings.

Retained Earnings to Total Assets Formula

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Retained Earnings to Total Assets

Explanation of Retained Earnings to Total Assets

The Retained Earnings to Total Assets ratio measures the company's ability to accumulate earnings using its Total Assets.

Importance of Retained Earnings to Total Assets

A high, or increasing Retained Earnings to Total Assets ratio is usually a positive sign, showing the company is able to continually retain increasingly more earnings. As a company grows and matures, you should see this ratio increase.

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