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Sustainable growth rate

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[edit] Sustainable growth rates (SGR) from a financial perspective
The sustainable growth rate according to Robert C. Higgins is the maximum growth rate a company can achieve consistent with the firm`s established financial policy.

 


Sustainable growth rate
Definition:
Maximum rate of growth a firm can sustain without increasing financial leverage. ...

I also consider a firm's implied sustainable growth rate, defined as return on equity times its retention ratio (the percentage of profits it keeps to reinvest in the business).

As a general rule, the bond market, and the overall economy benefit from steady, sustainable growth rates.

See also: Stock, Rate, Future, Offer, Investment

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