Some mis -
allocation of capital decisions must be tolerated too.
Not exact matches
The advisory firm says Cation has put forward a «reasonably compelling case» for board change to allow better
capital allocation decisions, enhance profitability and ensure appropriate alignment
of executive compensation.
Management uses financial statements to make
capital allocation decisions — ideally, they want to maximize the growth
of their highest - profiting departments
It should be no surprise that many countries in the late stages
of their own investment - growth «miracles» have tried this kind
of transformation, but none has ever managed so radical a change within its financial sector quickly enough, at least in part because the
capital allocation decision is at the heart
of distributional politics.
«We find it hard to argue with the accelerated pace
of subscriber additions as the conceptual proof
of its
capital allocation decision, and we also expect the Street to continue to underwrite the investments,» Ju said.
The corporate trend has been towards smaller more focused companies that can make specific strategic
decisions and better
capital allocation plans rather than being obscured by the overall mass
of the parent company.
Technology companies can grow quickly (in the case
of Apple) making
capital allocation decisions around growth versus profit challenging.
The act
of buying back shares
of stock is a separate
capital allocation decision, regardless
of the reason why you're buying those shares.
Proxy advisory firm ISS said the dissident «has made a reasonably compelling case for some change to the incumbent board to facilitate improvements to
capital allocation decisions, to enhance profitability and to ensure appropriate alignment
of executive compensation.»
During a typical day, a significant portion
of my time is spent navigating investment
decisions and the
allocation of capital.
Included in the PowerPoint: a) Scarcity, Choice and Opportunity Cost - The Fundamental Economic Problem - The Meaning
of Scarcity and the inevitability
of choices at all levels (individual, firms, govt)- The basic questions
of what will be produced ow and for whom - The Meaning
of the term «Ceteris Paribus» - The Margin and
Decision Making at the Margin - Sort run, long run, very long run b) Positive and Normative Statements - the distinction between fact and value judgements c) Factors of Production - the rewards to the factors of production: land, labour, capital and enterprise - Specialization and division of labour d) Resource Allocation in Different Economic Systems and Issues of Transition - decision making in market, planned and mixed economies - the role of the factor enterprise in a modern economy e) Production Possibility Curves - shape and shifts of the curve - constant and increasing opportunity costs f) Money - functions and characteristics in a modern economy - barter, cash and bank deposits, cheques, near money, liquidity g) Classification of Goods and Services - free goods, private goods (economic goods) and public goods - merit goods and demerit goods as the outcome of imperfect information by consumers PowerPoint Also Includes: - Key Terms for each Chapter - Activities - Multiple Choice and Essay questions from past exam
Decision Making at the Margin - Sort run, long run, very long run b) Positive and Normative Statements - the distinction between fact and value judgements c) Factors
of Production - the rewards to the factors
of production: land, labour,
capital and enterprise - Specialization and division
of labour d) Resource
Allocation in Different Economic Systems and Issues
of Transition -
decision making in market, planned and mixed economies - the role of the factor enterprise in a modern economy e) Production Possibility Curves - shape and shifts of the curve - constant and increasing opportunity costs f) Money - functions and characteristics in a modern economy - barter, cash and bank deposits, cheques, near money, liquidity g) Classification of Goods and Services - free goods, private goods (economic goods) and public goods - merit goods and demerit goods as the outcome of imperfect information by consumers PowerPoint Also Includes: - Key Terms for each Chapter - Activities - Multiple Choice and Essay questions from past exam
decision making in market, planned and mixed economies - the role
of the factor enterprise in a modern economy e) Production Possibility Curves - shape and shifts
of the curve - constant and increasing opportunity costs f) Money - functions and characteristics in a modern economy - barter, cash and bank deposits, cheques, near money, liquidity g) Classification
of Goods and Services - free goods, private goods (economic goods) and public goods - merit goods and demerit goods as the outcome
of imperfect information by consumers PowerPoint Also Includes: - Key Terms for each Chapter - Activities - Multiple Choice and Essay questions from past exam papers.
This level
of backlog is replicated across the country and is a direct result
of the
decisions taken by Michael Gove to cut
capital allocations by up to 80 % from 2010 onwards.
Though
capital allocation decisions are not captured perfectly in any one metric, many books argue that businesses that consistently achieve a high return on
capital measured as either ROA, ROE, ROIC are more likely to display a history
of good
capital allocation decisions; particularly important is it that one's return on
capital is consistently higher than one's cost
of capital (WACC), cf. Find the Best Stocks for further information.
On the other hand, buybacks take the
capital allocation decision out
of one's hands and leave it to the MD / FD's discretion.
My approach to these things is probabilistic; the lack
of share buybacks in Q3 leads me to reassess upward the probability that future (and perhaps past)
capital allocation decisions will be (or have been) poor.
Granted, I always had a pretty dim view
of TOT's
capital allocation strategy anyway... but this must surely be the most bone - headed management
decision I've seen in a long time.
And it is this higher probability
of poor
capital allocation, and by extension possibly higher probability
of overall poor management
decisions (possibly associated with accounting treatments), that leads me to eliminate the security from my portfolio.
I was just mulling over a similar concern about Markel's buyback program which seems to be constant and targeted at offsetting dilution from their compensation plan and how un» business - like» that
decision and pattern
of behavior is and how that should shape my understanding
of their
capital allocation and general acumen.
In a harder - edged attack, cash flows into index funds have been blamed for pushing the prices
of a few favored stocks up to astronomical levels, distorting markets and making indefensible
capital allocation decisions.
My interpretation or recent corporate events is that value realization for holders
of ENZN is nearer than ever, and I'm a bit more comfortable as I feel that
capital allocation decisions are now in the hands
of experienced
capital allocators.