Capital Allocation
Capital allocation is the process of strategizing and designating investment funds in an effort to maximize a business' investment value and increase shareholder equity.
What Small and Midsize Businesses Need to Know About Capital Allocation
An SMB might use capital allocation to make better investment decisions. This process can maximize profits for a smaller company with a limited investment budget, allowing them to allocate funds where they are most productive.
Related terms
- Tokenization
- ROIT (Return on Information Technology)
- SAC (Subscriber Acquisition Cost)
- Energy Trading and Risk Management (ETRM)
- Chief Revenue Officer (CRO)
- Core Banking System
- Record to Report (R2R)
- Fintech
- Financial Management System (FMS)
- Business Capability Modeling
- Capital Allocation
- Compound Annual Growth Rate (CAGR)
- Net Present Value
- Hedge Fund
- Gateway
- Selling General and Administrative (SG&A) Expenses
- ROE (Return on Equity)
- Financial Planning and Analysis (FP&A)
- Dollar-Cost Averaging (DCA)
- Procure-to-pay Solution
