Sustainable Growth Rate Calculator
Sustainable Growth Rate Calculator | ||
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Parameter | Description | Example Value |
Return on Equity (ROE) | The return on equity, representing the company’s profitability. | 15% |
Retention Ratio | The portion of net income that is retained in the company rather than paid out as dividends. | 60% |
Sustainable Growth Rate (SGR) | The rate at which a company can grow its sales, earnings, and dividends at a consistent rate without having to increase debt or equity. Formula: ROE * Retention Ratio |
9% |