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7 Jan 2018
Use the data below to solve for the sustainable growth rates for 2011 to 2015. What is the sustainable growth rate for each year? Based on your analysis of the sustainable growth rate between 2011 and 2015, what are your recommendations for the firm?
2011 2012 2013 2014 2015 Profit Margin 17 17 79.3 22.8 23.6 Retention Ratio 1 1 1 1 1 Asset Turnover 0.38 0.49 0.55 0.63 0.62 Financial Leverage 1.64 1.44 1.79 1.99 2 Sustainable Growth Rate Actual Growth Rate 26.1 40.1 43.5 40 26.3
Use the data below to solve for the sustainable growth rates for 2011 to 2015. What is the sustainable growth rate for each year? Based on your analysis of the sustainable growth rate between 2011 and 2015, what are your recommendations for the firm?
| 2011 | 2012 | 2013 | 2014 | 2015 | |
| Profit Margin | 17 | 17 | 79.3 | 22.8 | 23.6 |
| Retention Ratio | 1 | 1 | 1 | 1 | 1 |
| Asset Turnover | 0.38 | 0.49 | 0.55 | 0.63 | 0.62 |
| Financial Leverage | 1.64 | 1.44 | 1.79 | 1.99 | 2 |
| Sustainable Growth Rate | |||||
| Actual Growth Rate | 26.1 | 40.1 | 43.5 | 40 | 26.3 |
Jean KeelingLv2
7 Jan 2018
