PLAIN-LANGUAGE DEFINITION

The difference between your actual (target) growth rate and your Sustainable Growth Rate. A positive gap means you're trying to grow faster than your financials support — requiring external capital or improved profitability.

What to check

Test the assumptions and consider what happens if revenue or costs differ from your plan.

Where this connects to Impresa

You may encounter this concept when reviewing Growth Intelligence / Capital Planning. Start with the underlying inputs and check the applicable reporting period before interpreting the result.

Read the Growth Intelligence / Capital Planning guide
A NOTE ON INTERPRETATION

Definitions here explain the concept. Accounting treatments, formulas, and industry comparisons may vary. Use your own records and qualified advice for material decisions.

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