Sustainable Growth Rate Calculator Tool

Sustainable Growth Rate Calculator

Sustainable Growth Rate Calculator

Sustainable Growth Rate Calculator
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%

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