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Figure 1From “What is sustainable growth rate? Growth has a financing boundary”

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.

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Figure 1Synthetic sustainable-growth-rate scenarios

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 (%)

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.

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Each line names a claim related to this exhibit, its source, and how it was checked.

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

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

From the essay

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APA 7

Isoglu, S. (2026). Synthetic sustainable-growth-rate scenarios [Figure]. isoglu.com. https://isoglu.com/insights/exhibits/isoglu-2026-what-is-sustainable-growth-rate-fig02/

BibTeX
@misc{isoglu-2026-what-is-sustainable-growth-rate-fig02,
  author = {Isoglu, Sinan},
  title = {{Synthetic sustainable-growth-rate scenarios}},
  year = {2026},
  howpublished = {Figure 1, isoglu.com},
  url = {https://isoglu.com/insights/exhibits/isoglu-2026-what-is-sustainable-growth-rate-fig02/},
  note = {From the essay {What is sustainable growth rate? Growth has a financing boundary}}
}
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  <a href="https://isoglu.com/insights/exhibits/isoglu-2026-what-is-sustainable-growth-rate-fig02/">
    <img src="https://isoglu.com/social/isoglu-2026-what-is-sustainable-growth-rate-fig02.png" alt="Figure 1: Synthetic sustainable-growth-rate scenarios" width="3200" height="2400">
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  <figcaption>Figure 1: Synthetic sustainable-growth-rate scenarios. Source: Author&#39;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. <a href="https://isoglu.com/insights/exhibits/isoglu-2026-what-is-sustainable-growth-rate-fig02/">View exhibit</a>.</figcaption>
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