Retained Earnings Total Assets Ratio

Key in the Retained Earnings and Total Assets Values from your Balance Sheet to the respective fields given below and then click Calculate to get the desired result.




 

Retained Earnings Total Assets Ratio Calculator - Glossary:



Retained Earnings Total Assets: The retained earnings to total assets ratio reflects a company's ability to finance its capital expenditure and operations with its own earnings, rather than relying on external financing like debt. A general target for this ratio is 1:1 (or 100%), indicating that a company's retained earnings are equal to its total assets.

Formula:

Net Profit Margin

How to use this equation?

This is a Balance Sheet component; the values are commonly stated against Retained Earnings Total Assets. To use this ratio, divide the Retained Earnings with Total Assets.

Retained Earning:
Retained earnings are the cumulative net earnings or profits a company keeps after paying dividends to shareholders.

Total Assets:
Total assets are the sum of all current and noncurrent assets that a company owns.

Example:
Retained earnings to total assets ratio for a company with a retained earnings of $200,000 and total assets of $770,000 is 25.97%. It means the company has ability to fund 25.97% of assets is funded by retained earnings and remaining 74.03% funded by liabilities and capital injected by equity holders.