 In this section, we are going to discuss a very interesting concept of the firm's sustainable growth rate. So, when we are financially doing the financial planning of a firm, when we are making decisions from a financial perspective by considering its financial decision making, then we have to consider a very interesting and important concept and that is the sustainable growth rate. When we say sustainable growth rate, it means that your firm's financial position is so strong that you can perform your growth rate without any external sources. How will your growth rate be without any external sources? And for that, we can, if you look at the formula of SGR, we are calling it sustainable growth rate. So, that is basically return on equity. You have to multiply it by subtracting the dividend payout ratio from one. You have to multiply it by return on equity. This will give you the value of your, of the firm's sustainable growth rate and it is important to have an idea of a firm's sustainable growth rate that without taking any funding, any loan borrowing from the external sources, what growth rate it can perform. So, when we look at the companies, overall basically we see that the high SGRs companies which show high sustainable growth rate, they are financially so strong, they perform better and the low sustainable growth rate their overall financial performance is not so good. It means that we need to look at this particular aspect that without considering the borrowed amount, without considering the loan, the financial overall situation of a firm is that you can consider it as a strong firm or a weak firm. So, there are, as I have told you, all aspects have some disadvantages so if you have maintained a high sustainable growth rate, then there can be some limitations to it. What can be the problem that your high sustainable growth rate can put a dent or some factors? What can be the problem that if your sustainable growth rate is high and there may be a possibility that if you see that their sustainable growth rate is high, financially they are doing very good. So, there could be new entrants entering into the market. Your competitor will be new, and when they will be new, obviously you will get tough time. Next is there can be a possibility in the overall economic and the social setup, your economic and social setup or scenario, there can be any change in that, even then your SGR effect can come, or if you want to achieve a high SGR, then in that high level of sustainable growth rate, there could be some agents, there could be some factors which can stop you from achieving a high SGR. Next is there are changes in the economic and the social scenario that your, for example, your things that you are selling in the market, they are not in fashion or there is not much demand for that. In such a situation, you can see that your profitability will be low and you will not be able to achieve a high SGR. Next is there are changes in the economic and the social scenario will be low and your overall SGR that cannot be very high. The third factor is that if you have not identified new trends or changes in demand, then again that can also limit that your SGR is not high, or if it is high then it can be low. Like any technologically advanced competitor has put some version in the market and what happened to that that your sales have been affected and that can also hamper or reduce or can also stop that your limit can be that your SGR is not high level. So these could be the limiting factors but if we are talking about a firm whose sustainable growth rate is high means that its growth rate is sufficiently high even without borrowing from the external sources it means the firm is financially strong it is doing good.