The sustainable growth rate is the rate of growth that a company can expect to see in the long term. Often referred to as G, the sustainable growth rate can be calculated by multiplying a company’s earnings retention rate by its return on equity. The growth rate can be calculated on a historical basis and averaged in order to determine the company’s average growth rate since its inception.
The sustainable growth rate is an indicator of what stage a company is in, during its life cycle. Understanding where a company is in its life cycle is important.
Nothing would happen since the amount to be received would remain the same i-e $20,000, so there is no chance for increase in liabilities. Moreover, the there is no new services so that asset should be impacted.
What there has been done is just classifying the payment which the Delta thought that they would receive earlier, but now it is being realized that it will take long, so just to not make any mistake or confusion for future this was done.
A Data gap analysis occurs when an organization evaluates it's available data, and seek methods of improving data collection to meet up with business expectations. Data gap analysis is done to ensure that, an organization has the right information to enable them run operations effectively.
