Retained Earnings to Stockholder's Equity
Retained Earnings
Retained Earnings to Stockholder's Equity =
 Total Stockholder's Equity 

Explanation of Retained Earnings to Stockholder's Equity:

The Retained Earnings to Stockholder's Equity ratio measures how much Retained Earnings the company is keeping within the company compared to the total equity.

Importance of Retained Earnings to Stockholder's Equity:

An excessively low, or decreasing Retained Earnings to Stockholder's Equity ratio is generally negative, possibly indicating the company is paying out increasingly more earnings to stockholders instead of reinvesting the money in the company.  This ratio will need to be compared to industry averages, as an excessively high ratio may be negative as well, meaning the company may be retaining more earnings than it needs.

Useful Links:   Latest News:
Calculate and compare the retained earnings to stockholders equity ratio to other companies and other ratios:
Download a Value Investor trial version FREE!

Have you already tried Value Investor?
Order from our FAST, SECURE online order page.

What other financial terms, ratios, or other calculations would you like to see on this website or in Value Investor?  Let us know!

  Value Investor Private BETA is now available! We have built an online data service to help you get financial data easily and instantly into Value Investor.