{"product_id":"sustainable-growth-rate","title":"Sustainable Growth Rate Calculator","description":"\u003cstyle\u003e\n.sgr-calculator {\n  --ink: #0f172a;\n  --muted: #475569;\n  --border: #e2e8f0;\n  --surface: #ffffff;\n  --tint: #f8fafc;\n  --primary: #1d4ed8;\n  --accent: #c2410c;\n  --accent-hover: #9a3412;\n  --chart-1: #1e40af;\n  --chart-2: #0d9488;\n  --chart-3: #7c3aed;\n  --chart-4: #be185d;\n  --chart-5: #334155;\n  color: var(--ink);\n  background: var(--surface);\n  container-type: inline-size;\n  border: 1px solid var(--border);\n  border-radius: 8px;\n  box-shadow: 0 1px 2px rgba(15,23,42,.06);\n  font-family: -apple-system, BlinkMacSystemFont, \"Segoe UI\", Roboto, Helvetica, Arial, sans-serif;\n  font-size: 15px;\n  line-height: 1.55;\n  margin: 0 auto;\n  max-width: 1200px;\n  overflow-wrap: anywhere;\n  padding: 24px;\n  width: 100%;\n}\n.sgr-calculator, .sgr-calculator *, .sgr-calculator *::before, .sgr-calculator *::after { box-sizing: border-box; }\n.sgr-calculator .sgr-header,\n.sgr-calculator .sgr-toolbar,\n.sgr-calculator .sgr-workspace,\n.sgr-calculator .sgr-breakdown,\n.sgr-calculator .sgr-chart-card,\n.sgr-calculator .sgr-table-card,\n.sgr-calculator .sgr-education,\n.sgr-calculator .sgr-input-panel,\n.sgr-calculator .sgr-results-panel,\n.sgr-calculator .sgr-result-grid,\n.sgr-calculator .sgr-field-grid,\n.sgr-calculator .sgr-chart-cluster,\n.sgr-calculator .sgr-legend,\n.sgr-calculator .sgr-legend-row,\n.sgr-calculator .sgr-table-wrap,\n.sgr-calculator .sgr-callout,\n.sgr-calculator .sgr-summary-pills,\n.sgr-calculator .sgr-breakdown-grid,\n.sgr-calculator .sgr-breakdown-visual,\n.sgr-calculator .sgr-section-head,\n.sgr-calculator .sgr-field,\n.sgr-calculator .sgr-input-shell,\n.sgr-calculator .sgr-result-card,\n.sgr-calculator .sgr-primary-card { min-width: 0; }\n.sgr-calculator .sgr-header { border-bottom: 1px solid var(--border); padding-bottom: 20px; }\n.sgr-calculator .sgr-title { font-size: 24px; font-weight: 700; letter-spacing: -.02em; line-height: 1.2; margin: 0; }\n.sgr-calculator .sgr-subtitle { color: var(--muted); margin: 8px 0 0; max-width: 760px; }\n.sgr-calculator .sgr-summary-pills { display: flex; flex-wrap: wrap; gap: 8px; margin-top: 16px; }\n.sgr-calculator .sgr-pill { background: var(--tint); border: 1px solid var(--border); border-radius: 999px; color: var(--muted); font-size: 13px; font-weight: 500; line-height: 1.35; padding: 6px 10px; }\n.sgr-calculator .sgr-pill strong { color: var(--ink); font-variant-numeric: tabular-nums; }\n.sgr-calculator .sgr-toolbar { align-items: center; display: flex; flex-wrap: wrap; gap: 10px; padding: 16px 0; }\n.sgr-calculator .sgr-button { align-items: center; border: 1px solid transparent; border-radius: 6px; cursor: pointer; display: inline-flex; font: inherit; font-size: 15px; font-weight: 650; gap: 10px; justify-content: center; line-height: 1.2; min-height: 44px; padding: 12px 18px; text-decoration: none; white-space: nowrap; }\n.sgr-calculator .sgr-button:focus-visible,\n.sgr-calculator .sgr-input:focus-visible { outline: 3px solid rgba(29,78,216,.35); outline-offset: 2px; }\n.sgr-calculator .sgr-download { background: var(--accent); color: #ffffff; }\n.sgr-calculator .sgr-download:hover { background: var(--accent-hover); box-shadow: 0 2px 5px rgba(15,23,42,.14); }\n.sgr-calculator .sgr-download:active { background: #7c2d12; }\n.sgr-calculator .sgr-reset { background: var(--surface); border-color: #94a3b8; color: var(--ink); }\n.sgr-calculator .sgr-reset:hover { background: var(--tint); box-shadow: 0 2px 5px rgba(15,23,42,.10); }\n.sgr-calculator .sgr-icon { display: inline-block; font-size: 18px; font-weight: 700; line-height: 1; }\n.sgr-calculator .sgr-workspace { display: grid; gap: 16px; grid-template-columns: minmax(0, 1fr); }\n.sgr-calculator .sgr-panel,\n.sgr-calculator .sgr-breakdown,\n.sgr-calculator .sgr-chart-card,\n.sgr-calculator .sgr-table-card { background: var(--surface); border: 1px solid var(--border); border-radius: 8px; padding: 20px; }\n.sgr-calculator .sgr-input-panel { background: var(--tint); }\n.sgr-calculator .sgr-section-head { align-items: start; display: flex; flex-wrap: wrap; gap: 8px 16px; justify-content: space-between; margin-bottom: 16px; }\n.sgr-calculator .sgr-section-title { font-size: 18px; font-weight: 650; line-height: 1.3; margin: 0; }\n.sgr-calculator .sgr-section-copy { color: var(--muted); font-size: 13px; font-weight: 500; margin: 4px 0 0; max-width: 720px; }\n.sgr-calculator .sgr-field-grid { display: grid; gap: 16px; grid-template-columns: repeat(auto-fit, minmax(210px, 1fr)); }\n.sgr-calculator .sgr-field { display: flex; flex-direction: column; }\n.sgr-calculator .sgr-label { color: var(--ink); display: block; font-size: 14px; font-weight: 600; margin-bottom: 6px; }\n.sgr-calculator .sgr-input-shell { position: relative; }\n.sgr-calculator .sgr-input { appearance: none; background: var(--surface); border: 1px solid #94a3b8; border-radius: 6px; color: var(--ink); font: inherit; font-size: 15px; font-variant-numeric: tabular-nums; height: 44px; padding: 10px 12px; width: 100%; }\n.sgr-calculator .sgr-input:hover { border-color: #64748b; }\n.sgr-calculator .sgr-helper { color: var(--muted); font-size: 13px; font-weight: 500; line-height: 1.4; margin: 6px 0 0; min-height: 36px; }\n.sgr-calculator .sgr-error { color: #b91c1c; font-size: 13px; font-weight: 600; line-height: 1.35; margin: 5px 0 0; min-height: 18px; }\n.sgr-calculator .sgr-results-panel { display: flex; flex-direction: column; }\n.sgr-calculator .sgr-primary-card { background: #eff6ff; border: 1px solid #bfdbfe; border-radius: 8px; padding: 20px; }\n.sgr-calculator .sgr-primary-label { color: #1e3a8a; font-size: 14px; font-weight: 650; margin: 0; }\n.sgr-calculator .sgr-primary-value { color: #172554; font-size: 30px; font-weight: 700; font-variant-numeric: tabular-nums; letter-spacing: -.02em; line-height: 1.1; margin: 8px 0; }\n.sgr-calculator .sgr-primary-note { color: #1e3a8a; font-size: 13px; font-weight: 500; margin: 0; }\n.sgr-calculator .sgr-result-grid { display: grid; gap: 12px; grid-template-columns: repeat(2, minmax(0, 1fr)); margin-top: 12px; }\n.sgr-calculator .sgr-result-card { background: var(--tint); border: 1px solid var(--border); border-radius: 8px; padding: 14px; }\n.sgr-calculator .sgr-result-label { color: var(--muted); font-size: 13px; font-weight: 600; margin: 0; }\n.sgr-calculator .sgr-result-value { color: var(--ink); font-size: 20px; font-weight: 700; font-variant-numeric: tabular-nums; line-height: 1.2; margin: 6px 0 0; }\n.sgr-calculator .sgr-live { clip: rect(0 0 0 0); clip-path: inset(50%); height: 1px; overflow: hidden; position: absolute; white-space: nowrap; width: 1px; }\n.sgr-calculator .sgr-breakdown,\n.sgr-calculator .sgr-chart-card,\n.sgr-calculator .sgr-table-card { margin-top: 16px; }\n.sgr-calculator .sgr-breakdown-grid { align-items: start; display: grid; gap: 24px; grid-template-columns: minmax(0, 1fr); }\n.sgr-calculator .sgr-breakdown-visual { display: flex; flex-direction: column; gap: 16px; }\n.sgr-calculator .sgr-allocation-total { color: var(--muted); font-size: 13px; font-weight: 600; }\n.sgr-calculator .sgr-allocation-total strong { color: var(--ink); font-size: 20px; font-variant-numeric: tabular-nums; }\n.sgr-calculator .sgr-stackbar { background: #e2e8f0; border: 1px solid #cbd5e1; border-radius: 6px; display: flex; height: 40px; overflow: hidden; width: 100%; }\n.sgr-calculator .sgr-stack-segment { align-items: center; color: #ffffff; display: flex; font-size: 13px; font-weight: 700; justify-content: center; min-width: 0; text-shadow: 0 1px 1px rgba(15,23,42,.5); }\n.sgr-calculator .sgr-empty { background: var(--tint); border: 1px dashed #94a3b8; border-radius: 6px; color: var(--muted); font-size: 13px; font-weight: 600; padding: 14px; text-align: center; }\n.sgr-calculator .sgr-legend { display: grid; gap: 10px; }\n.sgr-calculator .sgr-legend-row { align-items: center; display: grid; gap: 8px 12px; grid-template-columns: 12px minmax(100px, auto) auto auto; justify-content: start; }\n.sgr-calculator .sgr-swatch { border-radius: 3px; height: 12px; width: 12px; }\n.sgr-calculator .sgr-legend-name { color: var(--ink); font-size: 13px; font-weight: 600; }\n.sgr-calculator .sgr-legend-value,\n.sgr-calculator .sgr-legend-percent { color: var(--muted); font-size: 13px; font-variant-numeric: tabular-nums; font-weight: 600; }\n.sgr-calculator .sgr-mini-table { border-collapse: collapse; font-size: 13px; width: 100%; }\n.sgr-calculator .sgr-mini-table th,\n.sgr-calculator .sgr-mini-table td { border-bottom: 1px solid var(--border); padding: 8px; text-align: left; }\n.sgr-calculator .sgr-mini-table th { color: var(--muted); font-weight: 650; }\n.sgr-calculator .sgr-mini-table td:nth-child(n+2),\n.sgr-calculator .sgr-mini-table th:nth-child(n+2) { font-variant-numeric: tabular-nums; text-align: right; }\n.sgr-calculator .sgr-chart-card { display: flex; flex-direction: column; }\n.sgr-calculator .sgr-chart-cluster { align-items: start; display: grid; gap: 0; grid-template-columns: minmax(0, 1fr); justify-content: center; }\n.sgr-calculator .sgr-plot-wrap { margin: 0 auto; max-width: 720px; width: 100%; }\n.sgr-calculator .sgr-chart-svg { display: block; height: auto; max-width: 100%; width: 100%; }\n.sgr-calculator .sgr-chart-legend { display: flex; flex-wrap: wrap; gap: 10px 18px; justify-content: center; margin-top: 16px; }\n.sgr-calculator .sgr-chart-key { align-items: center; display: inline-grid; font-size: 13px; font-weight: 600; gap: 8px; grid-template-columns: 12px auto; }\n.sgr-calculator .sgr-chart-key-line { border-radius: 2px; height: 4px; width: 12px; }\n.sgr-calculator .sgr-callout { background: var(--tint); border: 1px solid var(--border); border-radius: 6px; color: var(--muted); font-size: 13px; font-weight: 500; margin-top: 16px; padding: 10px 12px; }\n.sgr-calculator .sgr-safe-chart-stack .sgr-chart-cluster { grid-template-columns: minmax(0, 1fr); row-gap: 0; }\n.sgr-calculator .sgr-safe-chart-stack .sgr-chart-legend { margin-top: 16px; }\n.sgr-calculator .sgr-safe-chart-stack .sgr-callout { margin-top: 20px; }\n.sgr-calculator .sgr-table-wrap { overflow-x: auto; width: 100%; }\n.sgr-calculator .sgr-table { border-collapse: collapse; min-width: 680px; width: 100%; }\n.sgr-calculator .sgr-table th,\n.sgr-calculator .sgr-table td { border-bottom: 1px solid var(--border); padding: 11px 12px; text-align: left; vertical-align: middle; }\n.sgr-calculator .sgr-table th { background: #1e3a8a; color: #ffffff; font-size: 13px; font-weight: 700; white-space: nowrap; }\n.sgr-calculator .sgr-table td { color: var(--ink); font-size: 14px; }\n.sgr-calculator .sgr-table tbody tr:hover { background: #fafafa; }\n.sgr-calculator .sgr-table th:nth-child(n+2),\n.sgr-calculator .sgr-table td:nth-child(n+2) { font-variant-numeric: tabular-nums; text-align: right; }\n.sgr-calculator .sgr-table-note { margin-top: 16px; }\n.sgr-calculator .sgr-safe-table-stack .sgr-table-note { margin-top: 20px; }\n.sgr-calculator .sgr-education { border-top: 1px solid var(--border); margin-top: 24px; padding-top: 8px; }\n.sgr-calculator .sgr-education h2 { font-size: 20px; font-weight: 700; line-height: 1.3; margin: 24px 0 8px; }\n.sgr-calculator .sgr-education h3 { font-size: 16px; font-weight: 650; line-height: 1.35; margin: 18px 0 6px; }\n.sgr-calculator .sgr-education p { color: #334155; margin: 8px 0; }\n.sgr-calculator .sgr-education ul { color: #334155; margin: 8px 0; padding-left: 22px; }\n.sgr-calculator .sgr-education li { margin: 6px 0; }\n.sgr-calculator .sgr-link { color: var(--primary); font-weight: 600; text-decoration: underline; text-underline-offset: 2px; }\n.sgr-calculator .sgr-link:hover { color: #1e40af; }\n.sgr-calculator .sgr-formula { background: var(--tint); border-left: 4px solid var(--primary); border-radius: 0 6px 6px 0; color: var(--ink); font-variant-numeric: tabular-nums; margin: 12px 0; padding: 12px 14px; }\n@container (min-width: 640px) {\n  .sgr-calculator .sgr-breakdown-grid { grid-template-columns: minmax(0, 1fr) minmax(280px, auto); justify-content: center; }\n}\n@container (min-width: 900px) {\n  .sgr-calculator .sgr-workspace { grid-template-columns: minmax(0, 1.05fr) minmax(340px, .95fr); }\n}\n@container (max-width: 639px) {\n  .sgr-calculator { border-left: 0; border-radius: 0; border-right: 0; padding: 16px; }\n  .sgr-calculator .sgr-panel,\n  .sgr-calculator .sgr-breakdown,\n  .sgr-calculator .sgr-chart-card,\n  .sgr-calculator .sgr-table-card { padding: 16px; }\n  .sgr-calculator .sgr-button { flex: 1 1 auto; padding-left: 14px; padding-right: 14px; }\n  .sgr-calculator .sgr-result-grid { grid-template-columns: minmax(0, 1fr); }\n  .sgr-calculator .sgr-legend-row { grid-template-columns: 12px minmax(90px, auto) auto; }\n  .sgr-calculator .sgr-legend-percent { grid-column: 2 \/ 4; }\n}\n@container (max-width: 359px) {\n  .sgr-calculator { padding: 12px; }\n  .sgr-calculator .sgr-toolbar { align-items: stretch; flex-direction: column; }\n  .sgr-calculator .sgr-button { width: 100%; }\n}\n\u003c\/style\u003e\n\u003cdiv class=\"sgr-calculator\" data-calculator-root\u003e\n  \u003csection class=\"sgr-header\"\u003e\n    \u003ch2 class=\"sgr-title\"\u003eSustainable Growth Rate Calculator\u003c\/h2\u003e\n    \u003cp class=\"sgr-subtitle\"\u003eEstimate the annual growth a company can fund through retained earnings while holding its return on equity and payout policy constant.\u003c\/p\u003e\n    \u003cdiv class=\"sgr-summary-pills\" aria-label=\"Live calculation summary\"\u003e\n      \u003cspan class=\"sgr-pill\"\u003eSGR \u003cstrong data-sgr-pill-sgr\u003e10.00%\u003c\/strong\u003e\u003c\/span\u003e\n      \u003cspan class=\"sgr-pill\"\u003eRetention \u003cstrong data-sgr-pill-retention\u003e50.00%\u003c\/strong\u003e\u003c\/span\u003e\n      \u003cspan class=\"sgr-pill\"\u003eROE \u003cstrong data-sgr-pill-roe\u003e20.00%\u003c\/strong\u003e\u003c\/span\u003e\n      \u003cspan class=\"sgr-pill\"\u003eRetained \u003cstrong data-sgr-pill-retained\u003e$1,000,000.00\u003c\/strong\u003e\u003c\/span\u003e\n    \u003c\/div\u003e\n  \u003c\/section\u003e\n\n  \u003cdiv class=\"sgr-toolbar\" aria-label=\"Calculator actions\"\u003e\n    \u003cbutton class=\"sgr-button sgr-download\" type=\"button\" data-sgr-download\u003e\u003cspan class=\"sgr-icon\" aria-hidden=\"true\"\u003e⇩\u003c\/span\u003e\u003cspan\u003eDownload Excel\u003c\/span\u003e\u003c\/button\u003e\n    \u003cbutton class=\"sgr-button sgr-reset\" type=\"button\" data-sgr-reset\u003e\u003cspan class=\"sgr-icon\" aria-hidden=\"true\"\u003e↺\u003c\/span\u003e\u003cspan\u003eReset\u003c\/span\u003e\u003c\/button\u003e\n  \u003c\/div\u003e\n\n  \u003cdiv class=\"sgr-workspace\"\u003e\n    \u003csection class=\"sgr-panel sgr-input-panel\" aria-labelledby=\"sgr-inputs-heading\"\u003e\n      \u003cdiv class=\"sgr-section-head\"\u003e\n        \u003cdiv\u003e\n          \u003ch3 class=\"sgr-section-title\" id=\"sgr-inputs-heading\"\u003eCompany inputs\u003c\/h3\u003e\n          \u003cp class=\"sgr-section-copy\"\u003eUse figures from the same reporting period. Negative net income is allowed; dividends and equity require nonnegative values.\u003c\/p\u003e\n        \u003c\/div\u003e\n      \u003c\/div\u003e\n      \u003cdiv class=\"sgr-field-grid\"\u003e\n        \u003cdiv class=\"sgr-field\"\u003e\n          \u003clabel class=\"sgr-label\" for=\"sgr-net-income\"\u003eNet income\u003c\/label\u003e\n          \u003cdiv class=\"sgr-input-shell\"\u003e\u003cinput class=\"sgr-input\" id=\"sgr-net-income\" data-sgr-input=\"netIncome\" inputmode=\"decimal\" type=\"text\" value=\"$2,000,000.00\" aria-describedby=\"sgr-net-income-help sgr-net-income-error\"\u003e\u003c\/div\u003e\n          \u003cp class=\"sgr-helper\" id=\"sgr-net-income-help\"\u003eProfit after taxes for the selected annual period.\u003c\/p\u003e\n          \u003cp class=\"sgr-error\" id=\"sgr-net-income-error\" data-sgr-error=\"netIncome\" aria-live=\"polite\"\u003e\u003c\/p\u003e\n        \u003c\/div\u003e\n        \u003cdiv class=\"sgr-field\"\u003e\n          \u003clabel class=\"sgr-label\" for=\"sgr-dividends\"\u003eDividends paid\u003c\/label\u003e\n          \u003cdiv class=\"sgr-input-shell\"\u003e\u003cinput class=\"sgr-input\" id=\"sgr-dividends\" data-sgr-input=\"dividends\" inputmode=\"decimal\" type=\"text\" value=\"$1,000,000.00\" aria-describedby=\"sgr-dividends-help sgr-dividends-error\"\u003e\u003c\/div\u003e\n          \u003cp class=\"sgr-helper\" id=\"sgr-dividends-help\"\u003eCash dividends attributable to the same period.\u003c\/p\u003e\n          \u003cp class=\"sgr-error\" id=\"sgr-dividends-error\" data-sgr-error=\"dividends\" aria-live=\"polite\"\u003e\u003c\/p\u003e\n        \u003c\/div\u003e\n        \u003cdiv class=\"sgr-field\"\u003e\n          \u003clabel class=\"sgr-label\" for=\"sgr-equity\"\u003eShareholders' equity\u003c\/label\u003e\n          \u003cdiv class=\"sgr-input-shell\"\u003e\u003cinput class=\"sgr-input\" id=\"sgr-equity\" data-sgr-input=\"equity\" inputmode=\"decimal\" type=\"text\" value=\"$10,000,000.00\" aria-describedby=\"sgr-equity-help sgr-equity-error\"\u003e\u003c\/div\u003e\n          \u003cp class=\"sgr-helper\" id=\"sgr-equity-help\"\u003eUse average equity when available; ending equity is a practical fallback.\u003c\/p\u003e\n          \u003cp class=\"sgr-error\" id=\"sgr-equity-error\" data-sgr-error=\"equity\" aria-live=\"polite\"\u003e\u003c\/p\u003e\n        \u003c\/div\u003e\n      \u003c\/div\u003e\n    \u003c\/section\u003e\n\n    \u003csection class=\"sgr-panel sgr-results-panel\" aria-labelledby=\"sgr-results-heading\"\u003e\n      \u003cdiv class=\"sgr-section-head\"\u003e\n        \u003cdiv\u003e\n          \u003ch3 class=\"sgr-section-title\" id=\"sgr-results-heading\"\u003eLive results\u003c\/h3\u003e\n          \u003cp class=\"sgr-section-copy\"\u003eCalculated immediately from the current inputs.\u003c\/p\u003e\n        \u003c\/div\u003e\n      \u003c\/div\u003e\n      \u003cdiv class=\"sgr-primary-card\"\u003e\n        \u003cp class=\"sgr-primary-label\"\u003eSustainable growth rate\u003c\/p\u003e\n        \u003cp class=\"sgr-primary-value\" data-sgr-result=\"sgr\"\u003e10.00%\u003c\/p\u003e\n        \u003cp class=\"sgr-primary-note\" data-sgr-interpretation\u003eA positive 10.00% rate indicates internally supportable annual growth under unchanged assumptions.\u003c\/p\u003e\n      \u003c\/div\u003e\n      \u003cdiv class=\"sgr-result-grid\"\u003e\n        \u003cdiv class=\"sgr-result-card\"\u003e\n\u003cp class=\"sgr-result-label\"\u003eRetention ratio\u003c\/p\u003e\n\u003cp class=\"sgr-result-value\" data-sgr-result=\"retention\"\u003e50.00%\u003c\/p\u003e\n\u003c\/div\u003e\n        \u003cdiv class=\"sgr-result-card\"\u003e\n\u003cp class=\"sgr-result-label\"\u003eReturn on equity\u003c\/p\u003e\n\u003cp class=\"sgr-result-value\" data-sgr-result=\"roe\"\u003e20.00%\u003c\/p\u003e\n\u003c\/div\u003e\n        \u003cdiv class=\"sgr-result-card\"\u003e\n\u003cp class=\"sgr-result-label\"\u003ePayout ratio\u003c\/p\u003e\n\u003cp class=\"sgr-result-value\" data-sgr-result=\"payout\"\u003e50.00%\u003c\/p\u003e\n\u003c\/div\u003e\n        \u003cdiv class=\"sgr-result-card\"\u003e\n\u003cp class=\"sgr-result-label\"\u003eRetained earnings\u003c\/p\u003e\n\u003cp class=\"sgr-result-value\" data-sgr-result=\"retained\"\u003e$1,000,000.00\u003c\/p\u003e\n\u003c\/div\u003e\n      \u003c\/div\u003e\n      \u003cdiv class=\"sgr-live\" aria-live=\"polite\" aria-atomic=\"true\" data-sgr-live\u003eSustainable growth rate 10.00 percent.\u003c\/div\u003e\n    \u003c\/section\u003e\n  \u003c\/div\u003e\n\n  \u003csection class=\"sgr-breakdown\" aria-labelledby=\"sgr-breakdown-heading\" data-sgr-chart-card=\"allocation\"\u003e\n    \u003cdiv class=\"sgr-section-head\"\u003e\n      \u003cdiv\u003e\n        \u003ch3 class=\"sgr-section-title\" id=\"sgr-breakdown-heading\"\u003eEarnings allocation\u003c\/h3\u003e\n        \u003cp class=\"sgr-section-copy\"\u003eThe current-period split between earnings retained in the business and cash dividends.\u003c\/p\u003e\n      \u003c\/div\u003e\n    \u003c\/div\u003e\n    \u003cdiv class=\"sgr-breakdown-grid\"\u003e\n      \u003cdiv class=\"sgr-breakdown-visual\"\u003e\n        \u003cdiv class=\"sgr-allocation-total\"\u003eNet income allocated: \u003cstrong data-sgr-allocation-total\u003e$2,000,000.00\u003c\/strong\u003e\n\u003c\/div\u003e\n        \u003cdiv data-sgr-stack-host\u003e\u003c\/div\u003e\n        \u003cdiv class=\"sgr-legend\" data-sgr-allocation-legend\u003e\u003c\/div\u003e\n      \u003c\/div\u003e\n      \u003cdiv class=\"sgr-table-wrap\"\u003e\n        \u003ctable class=\"sgr-mini-table\" aria-label=\"Earnings allocation data\"\u003e\n          \u003cthead\u003e\u003ctr\u003e\n\u003cth\u003eCategory\u003c\/th\u003e\n\u003cth\u003eAmount\u003c\/th\u003e\n\u003cth\u003eShare\u003c\/th\u003e\n\u003c\/tr\u003e\u003c\/thead\u003e\n          \u003ctbody data-sgr-allocation-table\u003e\u003c\/tbody\u003e\n        \u003c\/table\u003e\n      \u003c\/div\u003e\n    \u003c\/div\u003e\n    \u003cdiv class=\"sgr-callout\" data-sgr-allocation-caption\u003eHalf of current earnings are retained, providing the internal capital that supports the calculated growth rate.\u003c\/div\u003e\n  \u003c\/section\u003e\n\n  \u003csection class=\"sgr-chart-card\" aria-labelledby=\"sgr-chart-heading\" data-sgr-chart-card=\"projection\"\u003e\n    \u003cdiv class=\"sgr-section-head\"\u003e\n      \u003cdiv\u003e\n        \u003ch3 class=\"sgr-section-title\" id=\"sgr-chart-heading\"\u003eFive-year sustainable path\u003c\/h3\u003e\n        \u003cp class=\"sgr-section-copy\"\u003eAn indexed comparison of the calculated sustainable path against a no-growth baseline, assuming the current SGR remains constant.\u003c\/p\u003e\n      \u003c\/div\u003e\n    \u003c\/div\u003e\n    \u003cdiv class=\"sgr-chart-cluster\"\u003e\n      \u003cdiv class=\"sgr-plot-wrap\" data-sgr-plot-host\u003e\u003c\/div\u003e\n      \u003cdiv class=\"sgr-chart-legend\" data-sgr-chart-legend\u003e\u003c\/div\u003e\n    \u003c\/div\u003e\n    \u003cdiv class=\"sgr-callout\" data-sgr-chart-caption\u003eAt a 10.00% SGR, the sustainable path reaches an index of 161.05 after five years versus 100.00 with no growth.\u003c\/div\u003e\n  \u003c\/section\u003e\n\n  \u003csection class=\"sgr-table-card\" aria-labelledby=\"sgr-table-heading\" data-sgr-table-card\u003e\n    \u003cdiv class=\"sgr-section-head\"\u003e\n      \u003cdiv\u003e\n        \u003ch3 class=\"sgr-section-title\" id=\"sgr-table-heading\"\u003eProjection detail\u003c\/h3\u003e\n        \u003cp class=\"sgr-section-copy\"\u003eA mechanical projection, not a forecast, based on a constant retention ratio and return on equity.\u003c\/p\u003e\n      \u003c\/div\u003e\n    \u003c\/div\u003e\n    \u003cdiv class=\"sgr-table-wrap\" data-sgr-table-wrap\u003e\n      \u003ctable class=\"sgr-table\"\u003e\n        \u003cthead\u003e\u003ctr\u003e\n\u003cth\u003eYear\u003c\/th\u003e\n\u003cth\u003eSustainable index\u003c\/th\u003e\n\u003cth\u003eNo-growth index\u003c\/th\u003e\n\u003cth\u003eProjected net income\u003c\/th\u003e\n\u003cth\u003eProjected equity\u003c\/th\u003e\n\u003c\/tr\u003e\u003c\/thead\u003e\n        \u003ctbody data-sgr-projection-body\u003e\u003c\/tbody\u003e\n      \u003c\/table\u003e\n    \u003c\/div\u003e\n    \u003cdiv class=\"sgr-callout sgr-table-note\" data-sgr-table-note\u003eYear 0 equals the entered reporting period. Later rows assume every year's retained earnings remain in equity and operating economics do not change.\u003c\/div\u003e\n  \u003c\/section\u003e\n\n  \u003csection class=\"sgr-education\"\u003e\n    \u003ch2\u003eWhat does the sustainable growth rate estimate?\u003c\/h2\u003e\n    \u003cp\u003eThe sustainable growth rate, or SGR, estimates how quickly a company can expand using profits kept inside the business rather than relying on new share issuance or a deliberate increase in borrowing. It combines two operating-finance decisions: how much profit management retains and how efficiently the company earns profit on shareholder capital. The result is an annualized percentage, not a guarantee. It is most useful as a disciplined baseline for comparing a company's stated growth ambitions with the internal funding capacity implied by its financial statements.\u003c\/p\u003e\n    \u003cp\u003ePublic-company users can obtain the required figures from annual or quarterly filings. The \u003ca class=\"sgr-link\" href=\"https:\/\/www.sec.gov\/resources-for-investors\/investor-alerts-bulletins\/how-read-10-k10-q\" target=\"_blank\" rel=\"noopener noreferrer\"\u003eSEC guide to Form 10-K and Form 10-Q\u003c\/a\u003e explains how those reports describe financial performance, while \u003ca class=\"sgr-link\" href=\"https:\/\/www.investor.gov\/introduction-investing\/getting-started\/researching-investments\/using-edgar-research-investments\" target=\"_blank\" rel=\"noopener noreferrer\"\u003eInvestor.gov's EDGAR guide\u003c\/a\u003e shows where to find filings.\u003c\/p\u003e\n\n    \u003ch2\u003eHow should each input be entered?\u003c\/h2\u003e\n    \u003ch3\u003eNet income\u003c\/h3\u003e\n    \u003cp\u003eEnter profit after tax for one consistent period, normally the latest fiscal year. Net income is required for a meaningful retention ratio and ROE. A higher positive figure raises ROE and usually raises SGR, all else equal. A negative figure is accepted because loss-making companies can have a negative ROE and negative sustainable growth rate. Do not mix quarterly net income with annual dividends or annual equity. Also avoid substituting EBITDA, operating income, or free cash flow; those measures answer different questions.\u003c\/p\u003e\n    \u003ch3\u003eDividends paid\u003c\/h3\u003e\n    \u003cp\u003eEnter cash dividends associated with the same period as net income. Dividends are optional in the sense that a company may pay none, in which case enter zero. Higher dividends reduce retained earnings, lower the retention ratio, and reduce SGR. If dividends exceed net income, the retention ratio becomes negative, signaling that the payout was funded partly from prior cash, asset sales, or financing rather than current profit. Use common-share dividends when analyzing common shareholders and stay consistent about whether preferred dividends are included.\u003c\/p\u003e\n    \u003ch3\u003eShareholders' equity\u003c\/h3\u003e\n    \u003cp\u003eEnter positive common shareholders' equity. Average equity—typically the average of beginning and ending balances—is preferable because net income is earned across a period while ending equity is a point-in-time balance. Ending equity is an acceptable practical fallback when average equity is unavailable. Lower equity mechanically raises ROE, so a highly leveraged or recently repurchasing company can show a high SGR even when the operating business has not improved. The \u003ca class=\"sgr-link\" href=\"https:\/\/www.sec.gov\/about\/reports-publications\/investorpubsbegfinstmtguide\" target=\"_blank\" rel=\"noopener noreferrer\"\u003eSEC financial-statement guide\u003c\/a\u003e provides a concise explanation of net income, dividends, and shareholders' equity.\u003c\/p\u003e\n\n    \u003ch2\u003eHow is the result calculated?\u003c\/h2\u003e\n    \u003cdiv class=\"sgr-formula\"\u003e\n\u003cstrong\u003eRetention ratio\u003c\/strong\u003e = 1 − Dividends ÷ Net income\u003cbr\u003e\u003cstrong\u003eReturn on equity\u003c\/strong\u003e = Net income ÷ Shareholders' equity\u003cbr\u003e\u003cstrong\u003eSustainable growth rate\u003c\/strong\u003e = Retention ratio × Return on equity\u003c\/div\u003e\n    \u003cp\u003eFor nonzero net income, the same SGR can be written as retained earnings divided by shareholders' equity. With the prefilled example, the company earns $2,000,000, pays $1,000,000 in dividends, and has $10,000,000 of equity. It retains 50% of profit, earns a 20% ROE, and therefore has a 10% sustainable growth rate. Full internal precision is used in the calculation; displayed values are rounded to two decimal places.\u003c\/p\u003e\n\n    \u003ch2\u003eHow should the outputs be interpreted?\u003c\/h2\u003e\n    \u003ch3\u003eSustainable growth rate\u003c\/h3\u003e\n    \u003cp\u003eA positive SGR indicates the model supports growth without changing the payout ratio, ROE, or financing policy. A zero rate means retained earnings add no growth capacity—usually because the company retains no earnings, earns no return on equity, or both. A negative rate can arise from losses or from dividends exceeding current profit. Higher is not automatically better: a very high rate may reflect unusually strong economics, unusually low equity caused by leverage or buybacks, or a temporary earnings peak.\u003c\/p\u003e\n    \u003ch3\u003eRetention ratio, payout ratio, and retained earnings\u003c\/h3\u003e\n    \u003cp\u003eThe retention ratio is the share of net income kept in the company. The payout ratio is the complementary share distributed as dividends; for ordinary positive-profit cases they sum to 100%. Retained earnings is the dollar amount of current profit left after dividends. These measures explain the funding side of SGR. The earnings-allocation bar and its data table use exactly these current values. When the split is economically drawable, each colored segment, legend row, amount, and percentage comes from the same calculation model.\u003c\/p\u003e\n    \u003ch3\u003eReturn on equity\u003c\/h3\u003e\n    \u003cp\u003eROE measures current-period net income relative to shareholder capital. It is the efficiency side of SGR. A high ROE can support rapid internal growth, but analysts should examine why ROE is high. Operating margins, asset efficiency, leverage, share repurchases, impairments, and one-time gains can all affect it. Negative equity makes conventional ROE difficult to interpret, so this calculator requires positive equity for a non-neutral result.\u003c\/p\u003e\n\n    \u003ch2\u003eWhat do the chart and projection table show?\u003c\/h2\u003e\n    \u003cp\u003eThe chart converts the SGR into an index that starts at 100. The sustainable path compounds at the calculated rate for five years, while the no-growth baseline remains at 100. This makes the effect of compounding easy to see without mixing dollar scales. The projection table adds illustrative net income and equity amounts. Each year assumes the same ROE and retention ratio, so both net income and equity grow at the same SGR. The table is a scenario engine, not management guidance: changing margins, capital intensity, dividends, leverage, or share issuance would change the actual path.\u003c\/p\u003e\n    \u003cp\u003eA useful external comparison is broad economic growth, but the comparison should match geography, industry, and inflation basis. The Federal Reserve Bank of St. Louis publishes a \u003ca class=\"sgr-link\" href=\"https:\/\/fred.stlouisfed.org\/series\/A191RO1Q156NBEA\" target=\"_blank\" rel=\"noopener noreferrer\"\u003ereal U.S. GDP growth series sourced from the Bureau of Economic Analysis\u003c\/a\u003e. A company growing above the economy may be gaining share, operating in a faster-growing market, or benefiting from price and mix; it may also be taking more risk.\u003c\/p\u003e\n\n    \u003ch2\u003eWhat are the main limitations and common mistakes?\u003c\/h2\u003e\n    \u003cul\u003e\n      \u003cli\u003eDo not treat SGR as a valuation conclusion or personalized investment recommendation. It is one diagnostic input.\u003c\/li\u003e\n      \u003cli\u003eDo not combine figures from different periods, currencies, accounting scopes, or continuing versus discontinued operations.\u003c\/li\u003e\n      \u003cli\u003eNormalize unusual gains, losses, and dividend events when they distort the period being analyzed.\u003c\/li\u003e\n      \u003cli\u003eCompare average equity with period earnings when possible, especially after large buybacks, acquisitions, or capital raises.\u003c\/li\u003e\n      \u003cli\u003eTest multiple periods. One year's ROE and payout policy may not represent a sustainable operating state.\u003c\/li\u003e\n      \u003cli\u003eRemember that growth consumes working capital and fixed assets. The simple SGR framework assumes the existing return on equity already captures those reinvestment needs.\u003c\/li\u003e\n    \u003c\/ul\u003e\n    \u003cp\u003eThe strongest use of this calculator is comparative: review the same company across several years, compare peers using consistent definitions, and reconcile the result with management's capital-allocation policy. Downloading the workbook preserves the current inputs, outputs, breakdown, projection rows, and methodology notes for further review.\u003c\/p\u003e\n  \u003c\/section\u003e\n\u003c\/div\u003e","brand":"FinancialModelsLab","offers":[{"title":"Default Title","offer_id":49909482160371,"sku":"sustainable-growth-rate","price":0.0,"currency_code":"USD","in_stock":true}],"thumbnail_url":"\/\/cdn.shopify.com\/s\/files\/1\/0522\/6191\/2762\/files\/sustainable-growth-rate.webp?v=1783935404","url":"https:\/\/financialmodelslab.com\/products\/sustainable-growth-rate","provider":"Financial Models Lab","version":"1.0","type":"link"}