Sustainable Growth and Leverage Effects

Authors

  • Michael A. Limitovskiy Graduate School of Financial Management, Academy of National Economy under the Government of Russian Federation, Moscow, Russia

Abstract

In the article I review typical mistakes concerning the application of sustainable growth conception and give recommendations how to avoid them. Then I input the effects of operating and investment leverages into the analysis and make some corrections of classical formulas of sustainable growth calculations. The article ends with a practical case illustrating the modified formulas application and differences between the results of the classical and the modifi ed approaches to analysis of sustainable growth.

Keywords:

sustainable growth, financial strategy, operating leverage, financial leverage, DuPont decomposition

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References

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Российский журнал менеджмента Т. 8, №2, 2010

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Published

2010-06-16

How to Cite

Limitovskiy, M. A. (2010). Sustainable Growth and Leverage Effects. Russian Management Journal, 8(2), 35–46. Retrieved from https://rjm.spbu.ru/article/view/362

Issue

Vol. 8 No. 2 (2010)

Section

New Research

License

Articles of the Russian Management Journal are open access distributed under the terms of the License Agreement with Saint Petersburg State University, which permits to the authors unrestricted distribution and self-archiving free of charge.