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Figure Figure 1 Growth that compounds

Synthetic sustainable-growth-rate scenarios

SGR changes when ROE or retention changes. The bars show the output of a declared identity, not an operating forecast or universal target.

A bar chart shows three synthetic sustainable growth-rate scenarios calculated as ROE multiplied by retention ratio. ROE 12 percent with 70 percent retention gives 8.4 percent. ROE 12 percent with 45 percent retention gives 5.4 percent. ROE 16 percent with 75 percent retention gives 12.0 percent. Values are illustrative identity outputs, not a forecast or benchmark.0%2%4%6%8%10%12%14%8.4%ROE 12%, retain 70%5.4%ROE 12%, retain 45%12.0%ROE 16%, retain 75%Declared ROE and retentionSynthetic sustainable growth rate (%)
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Reference & Evidence

Source: Author's synthetic SGR scenario model grounded in Robinson (1986) and Hulten and Hao (2008). The identity, assumptions, and values are illustrative; they are not current-company figures, a forecast, or financial advice.

Each line is a claim from the register this journal publishes against, resolved from the register at build time.

  • B Sustainable growth rate is a conditional financing identity, commonly return on equity multiplied by retention ratio Author framework grounded in ROB86-C1 and CHS09-C1 · G07-OWN-C1
  • B ROE, retention, payout, capital base, leverage, and external-financing assumptions must be declared before interpretation Author record design · G07-OWN-C2
  • B Retention ratio can be represented as one minus payout ratio under the declared convention Author formula · G07-OWN-C3

Grades: A, verified against the printed page of the primary source · B, primary source, text layer only · C, authoritative secondary · D, reported.

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