Internal Growth Rate

"An internal growth rate (IGR) is the highest level of growth achievable for a business without obtaining outside financing, and a firm's maximum internal growth rate is the level of business operations that can continue to fund and grow the company. The internal growth rate is an important measurement for startup companies and small businesses because it measures a firm's ability to increase sales and profit without issuing more stock (equity) or debt.

IGR = (Return on assets*The retention ratio)/1-(Return on assets*The retention ratio)"

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