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:
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At need, and made her beautiful and fierce,
Sudden and laughing.”
—William Butler Yeats (1865–1939)
“Perhaps our national ambition to standardize ourselves has behind it the notion that democracy means standardization. But standardization is the surest way to destroy the initiative, to benumb the creative impulse above all else essential to the vitality and growth of democratic ideals.”
—Ida M. Tarbell (1857–1944)
“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)