Internal growth rate


Also found in: Acronyms.

Internal growth rate

Maximum rate a firm can expand without outside sources of funding. Growth generated by cash flows retained by company.

Internal Growth Rate

The maximum amount of growth a company can sustain without needing to borrow money, make a new issue of stocks, or otherwise obtain a new source of financing. One calculates the internal growth rate by taking the company's retained earnings and dividing by its total assets.
References in periodicals archive ?
This decision table focuses on the financial factors of the internal growth rate, earnings per share, return on assets, and return on equity.
The Company's internal growth rates represent the weighted average, year-over-year growth rates of revenues excluding the effects of foreign currency rate fluctuations and acquisitions.
Our European branches achieved a third quarter internal growth rate of 61.
Steven Bunger, Chairman, President & CEO of Mobile Mini, stated, "Our first quarter internal growth rate was higher than expected and translated into better than expected lease revenues, EBITDA and diluted earnings per share.
Bunger pointed out, "The seven European branches along with the two California locations that were part of the same transaction in April 2006 will be factored into our internal growth rate for the 2007 second quarter.
For the first nine months of the year, storage and service revenue internal growth rates were 10% and 6%, respectively, yielding a total internal revenue growth rate of 9%.
But as we have repeatedly stated, for Mobile Mini, the number to watch is our internal growth rate which in the current third quarter was 19.
Trachtenberg pointed out, "After experiencing an exceptional internal growth rate for about two years, we look forward to continued healthy growth, but at a more sustainable rate in the fourth quarter and in the coming year.
Unlike most of his fund manager colleagues, who select stocks on the basis of rigid formulas, such as price/earnings ratios, internal growth rates, comparative-store sales, sales-per-employee, or even overall profitability, Appleton believes in only buying stocks with names or principal lines of business involving acronyms.
Double digit internal growth rates prior to 2009, together with stable debt levels, contributed to steady declines in leverage.
First Analysis invests for expansion and growth in small and mid-size companies with established business models, high internal growth rates, and large-market leadership potential.
Storage internal growth came in at the high end of our range and we saw improvement in our service internal growth rates.