The Reinvestment Rate is the percentage of earnings or profits that a company chooses to reinvest in its operations instead of distributing as dividends, indicating growth priorities.

The reinvestment rate indicates the portion of a company’s earnings put back into the business instead of being paid out as dividends.

What is a reinvestment rate? The reinvestment rate shows how effectively a company reinvests its profits into new projects or investments to generate further returns.

What is the meaning of reinvestment of earnings? Reinvestment of earnings is when a company uses its profits to grow the business or reduce debt, instead of paying dividends.

What is the reinvestment ratio of a company? The reinvestment ratio shows how much of a company`s earnings are reinvested into its growth, calculated by dividing retained earnings by net income.

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The reinvestment rate shows the portion of profits a company reinvests in its growth rather than paying dividends.

The reinvestment rate shows how much of a company`s earnings are put back into the business.