The maximum rate at which a business can grow without needing additional external financing, while maintaining its current financial ratios. Formula: ROE × Retention Ratio.
What it suggests
SGR estimates how fast a business can grow under a set of profitability, retention, and financing assumptions. It is a planning model rather than a speed limit.
A company that distributes most earnings generally retains less internally generated capital to fund growth.
Where this connects to Impresa
You may encounter this concept when reviewing Growth Intelligence / Capital Planning. Start with the underlying inputs and check the applicable reporting period before interpreting the result.
Read the Growth Intelligence / Capital Planning guideDefinitions here explain the concept. Accounting treatments, formulas, and industry comparisons may vary. Use your own records and qualified advice for material decisions.