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  25. What Is the Retention Ratio — How Much Money Has a Company Built Up Inside the Business? 3-Line Summary The retention ratio shows how much profit a company has kept inside the business instead of sending it out. It helps investors think about internal financial strength, crisis resistance, and future investment capacity. Still, a high retention ratio is not automatically good, and a low one is not automatically bad, so the structure behind the number matters. Recommended Keywords retention ratio, retained earnings, financial stability, stock basics, company analysis, shareholder equity, capital stock, financial statements, balance sheet strength, investing terms Table of Contents Why the retention ratio matters The easiest way to understand the retention ratio How the retention ratio is calculated Simple examples with numbers Does a high retention ratio always mean a good company? Does a low retention ratio always mean a bad company? The relationship between the retention rat...

  24. What Is the Debt Ratio — How Stable Is a Company’s Financial Strength? 3-Line Summary The debt ratio shows how much debt a company is using compared with its own equity capital. Even if two companies earn similar profits, different debt structures can create very different levels of risk, interest burden, and ability to survive difficult conditions. That is why investors should not look only at growth and profit, but also at the financial structure supporting that growth. Recommended Keywords debt ratio, financial stability, shareholder equity, debt, stock basics, financial statements, company analysis, balance sheet strength, earnings analysis, investing terms Table of Contents Why the debt ratio matters The easiest way to understand the debt ratio How the debt ratio is calculated Simple examples with numbers Why debt is not always a bad thing Does a high debt ratio always mean danger? Does a low debt ratio always mean a good company? The relationship between debt ratio and ...