Kapitalbindung
German
Etymology
Kapital (“capital”) + Bindung (“binding/commitment”)
Pronunciation
- IPA(key): [kapiˈtaːlˌbɪndʊŋ]
- Hyphenation: Ka‧pi‧tal‧bin‧dung
Noun
Kapitalbindung f (genitive Kapitalbindung, plural Kapitalbindungen)
- (finance, economics) capital commitment, capital tie-up (the extent to which financial resources are tied up in assets and are therefore not available as liquid funds)
- Durch eine Optimierung der Lagerhaltung konnte das Unternehmen die langfristige Kapitalbindung im Umlaufvermögen deutlich reduzieren.
- By optimizing inventory management, the company was able to significantly reduce long-term capital commitment in current assets.
- Investoren meiden Projekte mit hoher Kapitalbindung und geringer Liquidität in Zeiten steigender Zinsen.
- Investors avoid projects with high capital tie-up and low liquidity in times of rising interest rates.
Declension
Declension of Kapitalbindung [feminine]
Synonyms
- Mittelbindung (commitment of funds)
- Kapitalfestlegung (fixing of capital)
Antonyms
- Kapitalfreisetzung (release of capital/liquidations)
- Liquidität (liquidity)
Hypernyms
- Finanzzustand (financial state)
- Bilanzkennzahl (balance sheet metric)
Coordinate terms
- Anlagevolumen (the total volume of which a part is subject to commitment)
- Besicherung (the pledging of assets which often increases capital commitment)
- Opportunitätskosten (opportunity costs; the lost earnings due to capital being tied up)
- Sperrfrist (a contractual lock-up that forces capital commitment)
- Umschlagshäufigkeit (the frequency of turnover, which is inversely proportional to capital commitment)
Related terms
- kapitalintensiv (capital-intensive)
- binden (to bind/tie up)
References
- “Kapitalbindung” in Digitales Wörterbuch der deutschen Sprache
- “Kapitalbindung” in Duden online