Companies that achieve higher growth rates without seeking external financing

Question

Quizplus · Accepted Answer

Companies that achieve higher growth rates without seeking external financing generally have a high plowback ratio, meaning they reinvest a large portion of their profit back into the business. This leads to higher profitability, resulting in a high return on equity (ROE). Additionally, these companies are not highly leveraged, which means they have less debt and therefore more flexibility in their financial operations. All of these factors contribute to a company's ability to grow without needing external financing.

Companies That Achieve Higher Growth Rates Without Seeking External Financing