What is Sustainable Growth?
Sustainable Growth The maximum rate at which a company can grow its sales, earnings, and dividends without having to increase financial leverage or equity capital, often calculated as ROE multiplied by retention ratio.
Source: CFA Institute, IFRS Foundation, FASB (GAAP), Basel III Framework
How is “Sustainable Growth” Used in Practice?
Sustainable growth rate analysis helps firms plan expansion strategies without exceeding optimal debt or equity levels.
Certification Exam Relevance
Who Needs to Know This Term?
- Financial Analysts
- Bankers
- Traders
Learn “Sustainable Growth” Free with Termify
Master Sustainable Growth and 4,071+ professional terms with native pronunciation, IPA transcriptions and career quizzes. 100% free, forever.
Download Free for iOSFrequently Asked Questions
What is Sustainable Growth?
The maximum rate at which a company can grow its sales, earnings, and dividends without having to increase financial leverage or equity capital, often calculated as ROE multiplied by retention ratio.
Where can I learn this term for free?
Termify is a 100% free professional English app that teaches Sustainable Growth and 4,071+ other industry terms with native pronunciation, IPA transcriptions and career quizzes. Available on iOS in 23 languages. No subscription, no credit card required.
Last updated: