The Analysis of Correlation on Sustainable Growth Rate and Financial Management Goal

Sustainable growth rate is the biggest rate of sales revenues growth sustained by an enterprise’s financial resources, which represents the suitable growth speed of the enterprise. The goal of enterprise’s financial management is enterprise value maximization. But the key factor of enterprise value is expected cash flow which sales revenues growth caused. To use sustainable growth rate as sales revenues growth can favor a sustainable increase in enterprise value, and use enterprise value maximization as financial management goal can favor a sustainable growth too. There is a higher correlation between sustainable growth rate and financial management goal. This article take the correlation of sustainable growth rate and financial management goal as starting points for research, and attempts to understand sustainable growth rate in view of financial management goal.