The aim of this article is to evaluate the assertion that a company which is at least breaking even has built-in growth potential as a result of the depreciation charge. One of three possible conclusions might be derived: growth is always possible from depreciation charges, growth is sometimes possible from all or part of depreciation charges and growth is never possible out of depreciation charges. Some of the Australian analysts interviewed stated that they would only use retained cash flow as an indicator of future growth potential when a business is regarded, presumably on the basis of alternative information, as being a growth company or as being situated in a growth industry. This article will conclude that some growth in fixed assets is, in some circumstances, possible from depreciation charges. However, a consideration of all the influencing factors is so very complex, that the claim that depreciation charges represent future growth potential can have no general applicability at all.