Organic Growth
Short definition
Organic growth is the existing business growing through volume, price and mix, without an acquisition. Cash need comes from NWC and maintenance/growth capex; no goodwill is created.
Detailed explanation
Price inflation inflates organic sales; real organic is volume and mix. Cannibalisation is a new SKU eating the old and shrinks net organic cash.
SGR is the financing cap on organic growth. The split from inorganic is the absence of integration and goodwill risk — capacity and NWC risk remain.
Why it matters for the CFO
Management can celebrate “we grew organic” EBITDA while the cash gap is as hard as an acquisition.
How to read it
Sales growth − acquired sales − FX/inflation ≈ crude real organic. Without mix and price columns, volume stays hidden.
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What to learn next
Definitions are educational. They are not investment, credit or tax advice.