When business picks up particularly after challenging periods like our recent recession, it’s easy to overlook basic financials. It’s even easier to overlook less obvious financials like the Sustainable Growth Rate. The SGR calculates the rate of growth your business is able to sustain without additional borrowing. It essentially answers the question, “How fast can I afford to grow in my current state?” A simple look in the App Store will reveal an SGR calculator for less than a dollar. Check out the interesting discussion at the Harvard Business Review Blog here.
Find the Sustainable Growth Rate Calculator here for 99 cents.