Sustainable growth rate


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Sustainable growth rate

Maximum rate of growth a firm can sustain without increasing financial leverage.

Sustainable Growth Rate

The amount that a company or economy can grow without having to increase borrowing. A sustainable growth rate is desirable because it satisfies the needs of the company or economy without increasing its fixed costs (in this case, borrowing costs), which can create significant problems if the growth slows or begins to decline.
References in periodicals archive ?
Financial policy: An increase in the firm's debt-equity ratio increases the firm's financial leverage thereby increasing the sustainable growth rate.
In this scenario successful economic reforms in Iran are put in place, and a high capital investment rate is maintained in all sectors consistent with achieving a sustainable growth rate >4% per year on average in the economy over the period 2000-2015.
But monetary policy cannot do much to determine how high the sustainable growth rate is.
Recent literature (see, for example, Fuld, 1992) stresses analytic procedures and techniques such as benchmarking, which involves introspection as well as examination of external competitors (see, for example, Bruder, 1992; Bookhart, 1993), sustainable growth rate analysis (see, for example, Harkleroad, 1993), and financial analysis (see, for example, Jacobi, 1992).
The objectives of the general budget include maintaining the economic stability, realizing a sustainable growth rate, reducing the budget deficit by increasing the exports and decreasing the imports and reducing the poverty and unemployment rate.
Well, in a remarkable moment in what is likely the most dysfunctional American government on record, all sides agreed to repeal the sustainable growth rate formula and change the way Medicare payments are done.
WASHINGTON, April 15, 2015 /PRNewswire-USNewswire/ -- The American College of Emergency Physicians (ACEP) today applauded passage of legislation in the Senate to permanently replace the flawed Medicare Sustainable Growth Rate (SGR) formula with a payment system that rewards quality, efficiency and innovation (H.
Repealing the Sustainable Growth Rate, gestational diabetes, more residency positions for ob.
In 2014 we will continue to focus on areas that represent the best opportunities for al khaliji, to achieve a continued strong and sustainable growth rate.
House Ways and Means Health Subcommittee on the Medicare Sustainable Growth Rate (SGR).
The American Psychiatric Association, along with more than 100 other medical organizations, is calling on Congress to repeal and replace the Sustainable Growth Rate formula.
Summary: BEIRUT: Former Finance Minister Jihad Azour called upon the next government to implement the necessary economic reforms with the aim of achieving a sustainable growth rate.

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