Sustainable Growth Rate
Subject: Accounting | Topics:

Sustainable Growth Rate is the maximum growth rate that the firm can sustain and never having to increase financial influence. The Sustainable Growth Rate (SGR) identifies optimal growth from a financial perspective assuming a given strategy with clear defined financial limitations. Sustainable growth is defined as the annual percent of increase in sales which is consistent with a precise financial policy. This concept comes with a comprehensive financial framework and formula with regard to company specific SGR calculations.

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