Sustainable Growth Rate

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What it means

Growth a company can sustain without new external financing.

Why it matters

Growing faster than SGR forces debt or dilution.

How to calculate — with Cawan's Shoes

SGR = ROE × (1 − Payout Ratio). Cawan's: 28% × 60% retention = 16.8%.

What's at stake if you ignore this

Grow above SGR unfunded and cash runs out.