Capital allocation decision

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Capital allocation decision

Allocation of invested funds between risk-free assets and the risky portfolio.

Capital Allocation Decision

A company's or manager's decision on where to place recourses such that they produce the maximum possible return for shareholders. Capital allocation decisions represent attempts to produce profit in the most efficient way possible. They can be quite difficult to make, as the options for capital allocation are virtually limitless. Capital allocation decisions may involve making more of the same product, investing in research to invent new products, paying out more in dividends, or making any number of different decisions.
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The goal of the new alliance is to provide the oil and gas industry tools that allow them drive down lifting costs and ultimately make better capital allocation decisions.
No matter what the pressures, the leaders who often make the best capital allocation decisions are able to objectively evaluate data, while effectively identifying--and stepping beyond--their own assumptions.
The recent launch of the consultation draft of the Integrated Reporting Framework is a first step to transforming transparency in corporate reporting, so investment and capital allocation decisions can be made, based not just on financial capital efficiency but on natural and social capital returns as well.
Greenlight continues to ask shareholders to vote AGAINST Proposal 2 in Apple's proxy, which would eliminate preferred stock from Apple's charter and restrict the Board's flexibility on capital allocation decisions.
Managers in a variety of disciplines - finance, risk, audit - must deal with the risk associated with their capital allocation decisions.
Although these key constituency groups gave a fairly high rating to GAAP's overall value as exemplified by its consistency and usefulness in making capital allocation decisions, they also said many GAAP requirements should be more relevant to and useful for private company financial reporting.
The task force's research found that the key constituent groups rated the overall value of GAAP as fairly high in such areas as consistency and in usefulness as a tool in capital allocation decisions.
This article extends the discussion on improving performance by discussing some of the risks involved in making capital allocation decisions.
Making efficient capital allocation decisions is becoming easier in a tighter capital.
In its report, the OECD said: 'The project is about ensuring that the burden of taxation is fairly shared and that tax should not be a dominant factor in making capital allocation decisions.
When capital allocation decisions are based on political rather than financial criteria, the incentives are to keep such reporting ambiguous.
In his most recent role as Corporate Vice President for Cargill's Food Ingredient and Systems Platform he was responsible for strategy, capital allocation decisions, customer relationship management, as well as leading key sourcing and business excellence initiatives.
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