Internal Growth Rate

on . Posted in Project Management Engineering

Internal growth rate, abbreviated as IGR, is the highest rate of growth a company is able to achieve without using any external funds.


Internal Growth Rate Formula

\(\large{ IGR =  \frac{ RR }{ ROA }   }\)
\(\large{ IGR }\) = internal growth rate
\(\large{ RR }\) = retention ratio
\(\large{ ROA }\) = return on asset


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