Resource title

Sustainable Growth

Resource image

image for OpenScout resource :: Sustainable Growth

Resource description

The sustainable growth rate (SGR) of a firm is the maximum rate of growth in sales that can be achieved, given the firm's profitability, asset utilization, and desired dividend payout and debt (financial leverage) ratios. Variables typically include the net profit margin on new and existing revenues; the asset turnover ratio, which is the ratio of sales revenues to total assets; the assets to beginning of period equity ratio; and the retention rate, which is defined as the fraction of earnings retained in the business.

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Resource publisher

Resource publish date

Resource language

en

Resource content type

text/html

Resource resource URL

http://www.referenceforbusiness.com/small/Sm-Z/Sustainable-Growth.html

Resource license

Copyright © 2011 Advameg, Inc.