Internal Growth Rate Calculator
Internal Growth Rate Calculator | ||
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Parameter | Description | Example Value |
Return on Assets (ROA) | The return on assets, representing the company’s efficiency in using its assets to generate earnings. | 10% |
Retention Ratio | The portion of net income that is retained in the company rather than paid out as dividends. | 60% |
Internal Growth Rate (IGR) | The rate at which a company can grow its sales, earnings, and dividends using only internal financing. Formula: ROA * Retention Ratio |
6% |