Internal Growth Rate Calculator

Internal Growth Rate Calculator

Internal Growth Rate Calculator

Internal Growth Rate Calculator
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%

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