capital base

USAGE SUMMARY

"capital base" is a correct and commonly used phrase in written English.
It refers to the initial financial resources or assets that a company or organization has to support its operations and growth. Here are some examples of how "capital base" can be used in a sentence: 1. The company's strong capital base allowed it to weather the economic downturn and continue its expansion plans. 2. The government is looking to attract foreign investment in order to increase its capital base and drive economic growth. 3. As an entrepreneur, it's important to have a solid understanding of your capital base and how it can sustain your business in the long run. 4. The charity organization was able to fund its projects thanks to its growing capital base and generous donations from supporters. 5. After careful evaluation, the bank decided to approve the loan based on the applicant's stable income and strong capital base.

✓ Grammatically correct

News & Media

Formal & Business

Science

Human-verified examples from authoritative sources

Exact Expressions

59 human-written examples

He will use the cash to support the insurer's capital base and international expansion plans.

The New York Times

"Firms are taking money from wherever they can find it as they restructure their capital base".

The New York Times

Separation of trading from retail will further weaken the capital base.

The New York Times

Yet that hefty capital base makes it harder for HSBC to make money.

The New York Times

Morgan Stanley has struggled with its smaller capital base and an undiversified business.

The New York Times

A stronger capital base, courtesy of MTFG, should allow UFJ to write off its worst loans.

The Economist

Foreign banks promised modernisation and a big capital base: just what an emerging economy needed.

The Economist

"The bank will use its stronger capital base to meet this demand".

The New York Times

This would double their invested capital base, calculates Aaron Fischer of CLSA, a stockbroker.

The Economist

That "should provide the group with a solid capital base," Mr. Braden said.

The New York Times

"UBS had to enhance its capital base after U.S. banks' capital hikes".

The New York Times

Expert writing Tips

Best practice

When discussing a company's stability or growth potential, use "capital base" to emphasize the financial resources available to support its operations and future investments.

Common error

Avoid using "capital base" interchangeably with "capital budget". "Capital base" refers to the existing financial resources, while "capital budget" outlines planned expenditures on long-term assets.

Linguistic Context

The phrase "capital base" functions primarily as a noun phrase. Ludwig's examples show that it typically acts as the subject or object of a sentence, denoting the financial foundation or resources available to an organization. According to Ludwig AI, this is a correct and commonly used phrase.

Expression frequency: Very common

Frequent in

News & Media

57%

Formal & Business

29%

Science

14%

Less common in

Academia

0%

Encyclopedias

0%

Wiki

0%

Ludwig's WRAP-UP

In summary, "capital base" is a correct and frequently used noun phrase referring to the foundational financial resources of an entity. As Ludwig AI confirms, it's a well-established term, particularly in the domains of news, business, and finance. It serves to describe and quantify financial strength and stability. While generally professional in register, its use is widespread enough to be understood across various contexts. When writing, remember that "equity capital", "financial resources", or "asset base" may act as suitable alternatives depending on the specific nuance you want to convey. Lastly, be careful to differentiate "capital base" from "capital budget". The phrase is a strong indicator of a company’s stability and growth potential.

More alternative expressions

Phrases that express similar concepts, ordered by semantic similarity:

equity capital

Focuses specifically on the equity portion of the capital.

financial resources

Broader term encompassing all types of financial means.

asset base

Emphasizes the tangible and intangible assets forming the foundation.

funding structure

Highlights the arrangement of how funds are obtained and managed.

capital reserves

Specifies the portion of capital set aside for future needs.

net worth

Reflects the total assets minus liabilities, indicating overall value.

financial foundation

Emphasizes the base as a secure and reliable financial starting point.

investment pool

Refers to the aggregated funds available for investment.

capital assets

Highlights the assets that contribute to the capital of an organization.

available capital

Focuses on the portion of the capital that is readily accessible for use.

FAQs

How is "capital base" typically used in financial contexts?

In finance, "capital base" commonly refers to the total equity and debt a company uses to finance its overall assets and operations. It is a key indicator of a company's financial strength and ability to take on debt or fund new projects.

What are some alternatives to "capital base" that I can use in business writing?

Depending on the specific context, you can use alternatives such as "equity capital", "financial resources", or "asset base". Each of these emphasizes a slightly different aspect of the company's financial foundation.

Is it correct to use "capital basis" instead of "capital base"?

While "capital basis" is technically a valid phrase, it has a different and more specific meaning related to tax and accounting. "Capital base" is the more common and appropriate term when referring to a company's financial resources.

How does a strong "capital base" benefit a company?

A strong "capital base" provides a company with several advantages, including the ability to invest in growth opportunities, withstand economic downturns, and secure favorable financing terms. It also enhances investor confidence and overall financial stability.