Definition
Earnings retention is the percentage of earnings kept by the company rather than paid as dividends. It is how you talk about finding, converting, or keeping customers without waving your hands. Name it clearly, then let the next decision — a hire, a price, a test, or a pass — follow from that meaning.
In the room
How the word shows up in a real conversation.
A mentor asks, “What is your Earnings retention?” The useful answer is concrete: percentage of earnings kept by the company rather than paid as dividends. A slide title is not an answer.
Common mistake
Using Earnings retention as a label instead of a fact. If you cannot point to the evidence — a number, a customer, or a written assumption — you are using the word as jargon.
See also
Earnings
Company's profits after all expenses, taxes, and costs have been deducted.
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Earnings before interest and taxes (EBIT)
Profit measure before deducting interest and tax expenses.
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Earnings before interest, taxes, depreciation, and amortization (EBITDA)
Profit measure that excludes interest, taxes, depreciation, and amortization.
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Earnings before taxes (EBT)
Company's profit before income tax expenses are deducted.
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