| planning horizon | The long-range time period on which the financial planning process focuses, usually the next two to five years.
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| aggregation | The process by which smaller investment proposals of each of a firm's operational units are added up and treated as one big project.
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| percentage of sales approach | A financial planning method in which accounts are varied depending on a firm's predicted sales level.
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| retention ratio | The addition to retained earnings divided by net income. Also called the plowback ratio.
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| dividend payout ratio | The amount of cash paid out to shareholders divided by net income.
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| capital intensity ratio | A firm's total assets divided by its sales, or the amount of assets needed to generate $1 in sales.
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| internal growth rate | The maximum growth rate a firm can achieve without external financing of any kind.
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| sustainable growth rate | The maximum growth rate a firm can achieve without external equity financing while maintaining a constant debt-equity ratio.
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