Capitalise (Verb)
Meaning 1
Compute the present value of a business or an income.
Classification
Verbs of thinking, judging, analyzing, doubting.
Examples
- To estimate the value of the future revenue stream, we must capitalise the expected annual cash flow at the current interest rate.
- The method to capitalise a perpetual income stream involves dividing the annual amount by the capitalisation rate.
- He chose to capitalise the annual lease by applying the yield rate relevant to similar real estate investments.
- The valuation approach used to capitalise past financial performance assumes the business will maintain the same profitability levels in the future.
- Analysts capitalise the retained earnings by applying the weighted average cost of capital to estimate the value of equity.
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Meaning 2
Write in capital letters.
Classification
Verbs of sewing, baking, painting, performing.
Examples
- The title of the company should be capitalised at the top of the page in bold font.
- To make the warning label more visible, capitalise all the letters in the alert message.
- Her name should be capitalised in all mentions throughout the official document.
- The first word of each new line in the poem needs to be capitalised for emphasis.
- Make sure to capitalise the keywords in the headings to differentiate them from the rest of the text.
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Meaning 3
Supply with capital, as of a business by using a combination of capital used by investors and debt capital provided by lenders.
Classification
Verbs of buying, selling, owning.
Examples
- The investors decided to capitalise the startup through a mix of venture capital and bank loans to support its growth plans.
- Financing the new project would require a large amount of capital to be secured, to fully capitalise the development.
- To increase the potential gains from the merger, the company decided to capitalise the joint venture using debt financing.
- High-interest rates made it difficult for the company to capitalise, but they secured a low-cost loan that allowed them to do so.
- The business will attempt to capitalise using a combination of private investor funds and commercial mortgage-based loans.
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Meaning 4
Draw advantages from; "he is capitalizing on her mistake"; "she took advantage of his absence to meet her lover".
Classification
Verbs of buying, selling, owning.
Examples
- The investor is capitalizing on the current economic trend by making a smart investment decision.
- She took advantage of the power outage to talk to her friends and family without any distractions from phones and gadgets.
- He lost his job, but his wife is capitalizing on the opportunity for him to pursue his dream of becoming a writer.
- The politician is capitalizing on the opponent's recent scandal to gain more votes in the upcoming election.
- The company is capitalizing on the popularity of social media by advertising their products on various platforms.
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Meaning 5
Consider expenditures as capital assets rather than expenses.
Classification
Verbs of thinking, judging, analyzing, doubting.
Examples
- The company will capitalise the new equipment purchase by including it in its balance sheet as a capital asset rather than expensing it immediately.
- The decision to capitalise the software development costs allowed the tech firm to spread the expense over several years.
- When deciding whether to capitalise or expense a cost, consider the useful life of the asset and its potential long-term benefits.
- The business chose to capitalise its research and development costs, enabling it to better match expenses with future revenues.
- By choosing to capitalise the acquisition costs, the company was able to preserve liquidity and maintain a healthier profit margin.
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Meaning 6
Convert (a company's reserve funds) into capital.
Classification
Verbs of size, temperature change, intensifying, etc..
Examples
- The company decided to capitalise its accumulated reserves by converting them into permanent share capital to expand its operations.
- During the economic downturn, several businesses opted to capitalise their retained earnings to secure additional funding and stability.
- To increase its market presence, the startup chose to capitalise its untouched profits from the previous quarter to upgrade its manufacturing facility.
- By capitalising its unutilised assets, the struggling firm managed to restructure its finances and stay afloat.
- To avoid insolvency, the management team proposed to capitalise a portion of the company's hidden reserves as share capital to boost its investment options.