The fastest rate of development a company may experience while still retaining its capital structure was known as its sustainable growth rate. The company may have liquidity issues if its growth rate exceeds its sustainable growth rate as a result of a change in capital structure and excessive debt expansion. However, when a business grows at a rate that was below what is sustainable, it eventually stagnates. The article discusses how to calculate the sustainable growth rate and uses this approach to calculate the sustainable growth rates for 58 logistics service firms in Vietnam for the years 2019, 2020, and 2021. |
