Sustainable Growth Rate

Online Calculators for Business & Investment

Sustainable Growth Rate

The Sustainable Growth Rate is similar to the Internal Growth Rate, however the Sustainable Growth Rate tells us how fast a company can grow if it maintains a particular debt ratio and doesn't sell any shares.

Often, firms believe there is an "optimal" debt ratio and this calculation is based on this premise; in that if assets increase, so can debt by a certain proportion (keeping the debt ratio unchanged).

It is, in effect, the maximum speed a company can grow by maintaining a particular debt ratio and not selling new equity.

Sustainable Growth Rate Calculator

The calculator asks for:
Return on Equity (ROE), you can use our ROe Calculator to find this info.
Dividend per Share, which is found via company announcements or the financial media.
Earnings per Share (EPS), which is also found via company announcements, the financial media or you can use our EPS calculator.

Return on Equity (%):

Dividends per Share ($):

Earnings per Share ($):

Sustainable Growth Rate (%):

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