- Joined
- Aug 13, 2013

- Messages
- 6

- Reaction score
- 1

Profit Margin (%)- 2003- 17.0

Retention Ratio (%) - 2003- 100.0

Asset turnover (X)- 2003- 0.38

Financial Leverage (X)- 2003- 1.64

Growth rate in sales (%) - 2003- 26.1

Profit Margin (%)- 2004- 17.0

Retention Ratio (%)-2004- 100.0

Asset Turnover (X)-2004- 0.49

Financial Leverage (X)-2004- 1.44

Growth Rate in Sales (%)-2004-40.0

Profit Margin (%)- 2005- 19.3

Retention Ratio (%) - 2005- 100.0

Asset Turnover (X)- 2005- 0.55

Financial Leverage (X)- 2005- 1.79

Growth Rate In Sales (%)- 2005- 43.5

Profit Margin (%)- 2006- 22.8

Retention Ratio (%)- 2006- 100.0

Asset Turnover (X)- 2006- 0.63

Financial Leverage (X)- 2006- 1.99

Growth Rate in Sales (%)- 2006- 40.0

Profit Margin (%)- 2007- 23.6

Retention Ratio (%)- 2007- 100.0

Asset Turnover (X)- 2007- 0.62

Financial Leverage (X)- 2007- 2.00

Growth Rate in Sales (%)-2007- 26.3

A.) Calculate Genentech's annual sustainable growth rate for the years 2003-2007.

B.) Did Genentech face a growth management challenge during this period? Please explain briefly.

C.) How did Genentech cope with this challenge?

D.) Calculate Genentech's sustainable growth rate in 2007 assuming an asset turnover of 0.72 times. Calculate the sustainable growth rate in 2007 assuming a financial leverage of 2.20 times. Calculate the sustainable growth rate in 2007 assuming both of these changes occur.