Capital Allocation: How to Deploy Profits and Cash

Capital allocation is how a profitable business decides where accumulated cash and profits go next, one deployment at a time, against a stated return threshold. Owner-led businesses choose among reinvestment, capital expenditure, asset purchase, debt paydown, cash reserves, and owner distributions. Indinero’s fractional CFO services rank those options by payback, net present value, and return on invested capital, coordinated with the accounting and tax teams that produce the underlying numbers.