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)

  1. (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

Synonyms

Antonyms

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)

References