A measure of a company's profitability from its core operations, it's like the icing on the cakeโessential yet indicative of how well the company runs its business on a daily basis.
The retention ratio, also known as the plowback ratio, measures the proportion of earnings retained in a business after dividends are paid out to shareholders.
Return on Assets (ROA) measures a company's profitability relative to its total assets, helping to assess how efficiently a company utilizes its assets.