Sustainability of High Growth Rates
High growth rates cannot be sustained indefinitely. Ben McClure suggests that period for which such rates can be sustained can be estimated using the following:
| Competitive Situation | Sustainable period |
|---|---|
| Not very competitive | 1 year |
| Solid company with recognizable brand name | 5 years |
| Company with very high barriers to entry | 10 years |
Read more about this topic: Earnings Growth
Famous quotes containing the words high, growth and/or rates:
“Processions that lack high stilts have nothing that catches the eye.
What if my great-granddad had a pair that were twenty foot high,
And mine were but fifteen foot, no modern stalks upon higher,
Some rogue of the world stole them to patch up a fence or a fire.”
—William Butler Yeats (1865–1939)
“The wind of change is blowing through the continent. Whether we like it or not, this growth of national consciousness is a political fact.”
—Harold MacMillan (1894–1986)
“In the U.S. for instance, the value of a homemaker’s productive work has been imputed mostly when she was maimed or killed and insurance companies and/or the courts had to calculate the amount to pay her family in damages. Even at that, the rates were mostly pink collar and the big number was attributed to the husband’s pain and suffering.”
—Gloria Steinem (20th century)