Retention ratio and Reverse stress test: Difference between pages

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The proportion of the total earnings attributable to ordinary shareholders retained by a company.
A stress test that requires assessment of scenarios and circumstances that would render its business model unviable, thereby identifying potential business vulnerabilities.  


Reverse stress-testing starts from an outcome of business failure and identifies circumstances where this might occur.
This is different to general stress and scenario testing which tests for outcomes arising from changes in circumstances.


== See also ==
== See also ==
* [[Dividend payout ratio]]
* [[Scenario analysis]]
* [[Stress test]]

Revision as of 16:01, 28 March 2013

A stress test that requires assessment of scenarios and circumstances that would render its business model unviable, thereby identifying potential business vulnerabilities.

Reverse stress-testing starts from an outcome of business failure and identifies circumstances where this might occur.

This is different to general stress and scenario testing which tests for outcomes arising from changes in circumstances.

See also