Growing As Fast As Possible without New Investment

David Frodsham and Heinrich Liechtenstein
Additional contact information
Heinrich Liechtenstein: IESE

Chapter Chapter 4 in Getting Between the Balance Sheets, 2011, pp 31-36 from Palgrave Macmillan

Abstract: Abstract Sustainable growth (defined as growing as fast as possible without additional financing) is achieved by making sure NFO growth does not exceed the profits generated. The formula for sustainable growth is very simple: s u s t a i n a b l e g r o w t h r a t e = p r o f i t a b i l i t y N F O a s % o f s a l e s $$sustainable\;growth\;rate = \frac{{profitability}}{{NFO\;as\;\% \;of\;sales}}$$

Keywords: Balance Sheet; Sustainable Growth; Annual Sale; Fixed Asset; Surplus Cash (search for similar items in EconPapers)
Date: 2011
References: Add references at CitEc
Citations:

There are no downloads for this item, see the EconPapers FAQ for hints about obtaining it.

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:pal:palchp:978-0-230-29497-4_8

Ordering information: This item can be ordered from
http://www.palgrave.com/9780230294974

DOI: 10.1057/9780230294974_8

Access Statistics for this chapter

More chapters in Palgrave Macmillan Books from Palgrave Macmillan
Bibliographic data for series maintained by Sonal Shukla () and Springer Nature Abstracting and Indexing ().