Journal of Economics, Management and Trade

Our paper aims at assessing the relationship between sustainable growth rate and growth indices  in manufacturing companies in sub-saharan Africa with special reference to Dangote group of companies in Nigeria between 2008-2012.  The general objective of the study is to investigate the determinants/components of sustainable growth rate. R²   measured as the proportion of the variation in the dependent variable (GRO) that was explained by variations in the independent variables (ROA, CST, TAT, DPR and CFR). We carried out correlation analysis to show the relationship among the variables as well as regression analysis to show the impact and effect of independent variables; ROA, CST,TAT, DPR and CFR on  dependent variable; GRO. The result showed that 1% increase in ROA and CFR is expected to lead to 67.1 % and 18.5% in GRO respectively. In addition, 1% increase in CST, TAT and DPR led to 1%, 2.3% and 58.1% in GRO respectively.  The result of the correlation showed that null hypotheses 1, 4 and 5 were rejected while hypotheses 2 and 3 were accepted. ANOVA method was used to assess the overall significance of the model. The outcome revealed that the model is significant with F- value of 30.684 and P- value of .000. The result indicated that the model is significant as shown in the value of F-value of 30.684 and a P-value of .000 which is less than 0.05. The effect of the growth components on growth was assessed through regression analysis. The result showed that there was positive relationship between GRO and ROA and CFR. Similarly, there were inverse relationship between GRO and CST, TAT and DPR. It was concluded that the overall sustainable growth rate is enhanced if ‘target variables’ are well managed.