So as said in the previous clip, the company is growing too much, right?

Company grows too much.

And what is not too much?

Well it's what is the sustainable growth of a company.

This is what we're going to see in this clip.

We're going to do a little bit of algebra.

So, don't get too afraid about that.

But, we will go slowly about that.

Now, sustainable growth.

A company that is growing the NFO like this, and the Working Capital like this,

is not sustainable, because it needs more, and more, and more credit.

So the bank is actually taking all the risk of the growth of this company.

If something goes wrong, the one liable is the bank and

all the owners of the company.

That's why the bank is not really willing to give money to companies that

are in an exploding need of growth, right?

So what is sustainable growth?

Well, sustainable growth would be the growth, the maximum growth, for

which these two lines, instead of being open

are the mouth of the crocodile is parallel or getting closed, right?

Like this.

If this is parallel, the credit is not exploding.

So that will be a sustainable growth and

what does that mean in terms of growth of Working Capital.

Well basically the growth of NFO has to be smaller or

equal than the growth of Working Capital.