Which of the following is a factor in calculating sustainable growth?

Question

Quizplus · Accepted Answer

Sustainable growth rate is calculated using a few different factors, but one of the most important is the company's profit margin. This is because profit margin indicates how much profit the company is making on each sale, which in turn affects how much money it has to reinvest in growth. Other factors that could be included in the calculation of sustainable growth rate might include things like asset turnover, debt-to-equity ratio, and dividend payout ratio, among others. However, of the given choices, the best factor for calculating sustainable growth rate is profit margin.

Which of the Following Is a Factor in Calculating Sustainable