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:
“Gifts of one loved me,—
‘T was high time they came;
When he ceased to love me,
Time they stopped for shame.”
—Ralph Waldo Emerson (1803–1882)
“For the time of towns is tolled from the world by funereal chimes, but in nature the universal hours are counted by succeeding tribes of animals and plants, and by growth of joy on joy.”
—Ralph Waldo Emerson (1803–1882)
“Good government cannot be found on the bargain-counter. We have seen samples of bargain-counter government in the past when low tax rates were secured by increasing the bonded debt for current expenses or refusing to keep our institutions up to the standard in repairs, extensions, equipment, and accommodations. I refuse, and the Republican Party refuses, to endorse that method of sham and shoddy economy.”
—Calvin Coolidge (1872–1933)