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The real internal growth (sometimes shortened to RIG) of any company is the amount of new business that the company has managed to generate from its central base of operations, without having to call in contractors, advisers etc. An example of real internal growth would be a company that already develops an existing line of products and sells them at a profit. Should said company develop a new product from its existing technology, allowing the business to move into a new market area and thus fund the growth and expansion of the business, this would be termed real internal growth.

The inclusion of the word "real" means that the level of internal growth needs to have been clearly measured and as such, is not a forecast of how much growth the business might achieve; instead, a declaration of how much growth it has achieved.

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Q: What does real internal growth mean?
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What is real internal growth?

Real internal growth is the highest level of growth achievable for a business without obtaining outside financing. The internal growth rate for a public company can by found by taking a company's retained earnings and dividing it by total assets.


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