Assuming the following ratios are constant, what is the sustainable growth rate? Total asset turnover = 2.90

Question:

Assuming the following ratios are constant, what is the sustainable growth rate?
Total asset turnover = 2.90
Profit margin = 5.2%
Equity multiplier = 1.10
Payout ratio = 35%

Asset Turnover
Asset turnover is sales divided by total assets. Important for comparison over time and to other companies of the same industry. This is a standard business ratio.

Fantastic news! We've Found the answer you've been seeking!