Mittelbindung
German
Etymology
Mittel (“means/funds”) + Bindung (“binding/commitment”)
Pronunciation
- IPA(key): [ˈmɪtl̩ˌbɪndʊŋ]
- Hyphenation: Mit‧tel‧bin‧dung
Noun
Mittelbindung f (genitive Mittelbindung, plural Mittelbindungen)
- (finance, management) commitment of funds, tie-up of capital (the state in which financial resources are allocated to a specific purpose or asset and are therefore not available for other uses)
- Eine hohe Mittelbindung in veralteten Produktionsanlagen behindert die notwendige Modernisierung des Maschinenparks.
- A high commitment of funds in obsolete production facilities hinders the necessary modernization of the machinery.
- Durch die Reduzierung der Lagerbestände konnte das Unternehmen die Mittelbindung im Umlaufvermögen signifikant senken.
- By reducing inventory levels, the company was able to significantly lower the tie-up of capital in current assets.
Declension
Declension of Mittelbindung [feminine]
Synonyms
- Kapitalbindung (capital commitment)
- Kapitalfestlegung (capital allocation)
Antonyms
- Liquidität (liquidity)
Hypernyms
- Kapitalverwendung (application of capital)
- Finanzstatus (financial status)
Coordinate terms
- Anlagehorizont (the time frame during which funds remain committed)
- Bestandshaltung (the operational cause of fund commitment in logistics)
- Kapitalumschlag (the rate at which committed funds are converted back into cash)
- Opportunitätskosten (the lost potential due to the commitment of funds)
- Sorgfaltspflicht (the duty to minimize unnecessary commitment of funds)
Related terms
- binden (to bind/tie)
- Fördermittel (subsidies/funding)
References
- “Mittelbindung” in Digitales Wörterbuch der deutschen Sprache
- “Mittelbindung” in Duden online