Capterra Glossary
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
- Compound Annual Growth Rate (CAGR)
- Financial Planning and Analysis (FP&A)
- Selling General and Administrative (SG&A) Expenses
- Hedge Fund
- Gateway
- Record to Report (R2R)
- ROIT (Return on Information Technology)
- Chief Revenue Officer (CRO)
- SAC (Subscriber Acquisition Cost)
- ROE (Return on Equity)
- Tokenization
- Net Present Value
- Fintech
- Financial Management System (FMS)
- Business Capability Modeling