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)

  1. (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

Synonyms

Antonyms

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)
  • binden (to bind/tie)
  • Fördermittel (subsidies/funding)

References