Sustainable Growth Rate (%)

Metadata

  • Id: sustain_growth_rt
  • Type: fundamentals
  • Subtype: ratios
  • Units: percentage
  • Decimal Points: 2
  • Currency Convertible: No
  • Tags: “sustainable growth rate”, “SGR”, “internal growth rate”, “self-financed growth rate”, “retention growth rate”

Description

Sustainable growth rate is a measure of how much a company can grow without borrowing more money. It is based on the company’s return on common equity and dividend payout ratio. The sustainable growth rate shows how fast a company can expand its operations using its own profits and reinvesting them. The formula for sustainable growth rate is:
Sustainable growth rate = Return on common equity * (1 - Dividend payout ratio)
Where: - Return on common equity is R0025, return_com_eqy - Dividend payout ratio is R0034, dvd_payout_ratio