capital allocation

USAGE SUMMARY

"capital allocation" is a grammatically correct and commonly used phrase in written English.
You can use it when referring to the process that a company or organization undertakes to allocate its financial resources. For example, "The board of directors proposed a new capital allocation plan to manage their finances more efficiently."

✓ Grammatically correct

News & Media

Science

Formal & Business

Human-verified examples from authoritative sources

Exact Expressions

58 human-written examples

The other is capital allocation".

The Economist

In Clarke's world, capital allocation is paramount.

The Guardian - Business

It's a very poor capital allocation decision.

The New York Times

It is a matter equally of capital allocation and taste.

The New Yorker

"A careful capital allocation strategy is our risk control".

The New York Times

"In aggregate, it really contributes a lot to the efficiency of capital allocation, and capital allocation is very important," he said.

The New Yorker

She added that Yahoo "will continue to focus on evaluating various capital allocation initiatives".

The New Yorker

Raising resource productivity will require a refocusing of industrial effort, capital allocation and innovation.

The Guardian

A spokesman, Willard Hill, said that MBIA disagreed with Fitch's model for capital allocation.

The New York Times

The push to make producers rethink capital allocation is also coming from Wall Street.

The New York Times

We will rigorously handle capital allocation and work to make sure each business is executing well".

The Guardian

Expert writing Tips

Best practice

When discussing a company's financial strategy, use "capital allocation" to specifically refer to how the company distributes its funds among various projects, divisions, or investments.

Common error

Avoid using "capital allocation" interchangeably with general "resource management". "Capital allocation" specifically concerns financial resources, while "resource management" encompasses a broader range of assets, including human capital, equipment, and materials.

Linguistic Context

The phrase "capital allocation" functions as a noun phrase, typically acting as the subject or object of a sentence. It is used to name the process of distributing financial resources. As Ludwig AI indicates, the phrase is grammatically correct and commonly used in written English.

Expression frequency: Very common

Frequent in

News & Media

38%

Science

31%

Formal & Business

17%

Less common in

Encyclopedias

0%

Wiki

0%

Reference

0%

Ludwig's WRAP-UP

The phrase "capital allocation" is a grammatically sound and frequently used noun phrase, particularly in professional and formal settings such as business, finance, and academia. As Ludwig AI confirms, it's used to describe the process of distributing financial resources. It is commonly found in News & Media, Science and Formal & Business contexts. When writing about this topic, remember that "capital allocation" specifically refers to the deployment of financial resources and should not be confused with broader "resource management". Effective use of this phrase can enhance clarity and precision in discussions related to financial strategy and investment decisions.

More alternative expressions

Phrases that express similar concepts, ordered by semantic similarity:

resource allocation

Broader term encompassing the distribution of all resources, not just capital.

asset allocation

Deals specifically with distributing investments across different asset classes.

funds deployment

Emphasizes the active use or investment of funds.

capital deployment

Highlights the strategic implementation of capital resources.

investment strategy

Focuses on the overall plan for investing capital to achieve specific goals.

investment of capital

Focuses on the act of investing capital into specific ventures.

financial distribution

Highlights the act of spreading financial resources across different areas.

financial resource management

Covers a broader scope of managing all financial resources, not just allocation.

budgeting process

Focuses on the creation and management of a budget.

monetary distribution

Emphasizes the disbursement of money across different needs or projects.

FAQs

What does "capital allocation" mean in business?

In business, "capital allocation" refers to the process of distributing a company's financial resources across various investments, projects, and divisions to maximize shareholder value.

How does "asset allocation" differ from "capital allocation"?

Asset allocation is a specific type of "capital allocation" that focuses on distributing investments among different asset classes, such as stocks, bonds, and real estate, while "capital allocation" is a broader term that includes all financial resources.

Why is effective "capital allocation" important for companies?

Effective "capital allocation" is crucial because it directly impacts a company's profitability, growth, and overall financial health. Poor allocation decisions can lead to wasted resources and reduced returns.

What are some strategies for "capital allocation"?

Strategies for "capital allocation" include reinvesting in existing businesses, acquiring new businesses, paying dividends, buying back shares, and reducing debt. The best strategy depends on the company's specific goals and financial situation.