over capitalization

简明释义

资本过剩

英英释义

例句

1.During the audit, the accountants flagged over capitalization as a significant risk factor for the business.

在审计过程中，会计师将过度资本化标记为业务的一个重要风险因素。

2.The firm's over capitalization resulted in a high interest burden, making it difficult to invest in growth.

该公司的过度资本化导致了高额的利息负担，使其难以进行投资增长。

3.To avoid over capitalization, companies should maintain a balanced capital structure.

为了避免过度资本化，公司应该保持一个平衡的资本结构。

4.Investors should be cautious of firms that exhibit over capitalization as it can lead to poor financial health.

投资者应该对表现出过度资本化的公司保持警惕，因为这可能导致财务健康状况不佳。

5.The company faced severe financial issues due to over capitalization, which means it had too much debt compared to its equity.

由于过度资本化，公司面临严重的财务问题，这意味着它的债务相对于股本过多。

作文

In the world of finance and business, the term over capitalization refers to a situation where a company has issued more capital stock than it actually needs for its operations. This can lead to various financial issues, including decreased earnings per share and an inflated market valuation. Understanding over capitalization is crucial for investors, as it can significantly impact their investment decisions.To illustrate the concept of over capitalization, let’s consider a hypothetical company called Tech Innovations Inc. When Tech Innovations was founded, it raised $1 million in capital by issuing shares to investors. Initially, the company used this capital wisely to develop innovative products and expand its market reach. However, as the company grew, it decided to issue additional shares to raise more funds for expansion without a clear plan or necessity for such a large influx of capital.As a result, Tech Innovations ended up with an excessive amount of capital compared to its actual operational needs. This led to over capitalization, where the total value of the shares issued far exceeded the intrinsic value of the company’s assets and earnings potential. Investors began to notice that the company's earnings were not growing at the same rate as its share count, leading to a decline in earnings per share. The consequences of over capitalization can be severe. For one, it can create a false sense of security among investors who may believe that the company is performing better than it actually is due to the high number of shares available in the market. Moreover, when companies find themselves in this situation, they often struggle to maintain their stock prices, which can lead to a loss of investor confidence and a decline in the overall market value of the company.Furthermore, over capitalization can also hinder a company’s ability to raise future capital. If investors perceive a company as being overcapitalized, they may be hesitant to invest further, fearing that their investments will be diluted and that the company will continue to struggle with profitability. This can create a vicious cycle where the company finds it increasingly difficult to attract new investment, ultimately affecting its growth prospects.To avoid over capitalization, companies must carefully assess their capital needs and ensure that any new share issuance is justified by genuine growth opportunities. Financial forecasting and strategic planning play critical roles in determining the right amount of capital required for expansion. By maintaining a balanced approach to capital management, companies can prevent the pitfalls associated with over capitalization and foster sustainable growth.In conclusion, over capitalization is a significant concern in the realm of corporate finance. It can lead to diminished shareholder value, reduced earnings per share, and a tarnished reputation in the eyes of investors. Companies must remain vigilant and strategic in their capital management practices to avoid the traps of over capitalization and ensure long-term success. Investors, on the other hand, should conduct thorough due diligence before investing in companies that exhibit signs of over capitalization to safeguard their financial interests.

在金融和商业的世界中，术语过度资本化指的是公司发行的资本股票超过其实际运营所需的情况。这可能导致各种财务问题，包括每股收益下降和市场估值膨胀。理解过度资本化对投资者至关重要，因为它可能会显著影响他们的投资决策。为了说明过度资本化的概念，让我们考虑一家假想的公司，名为技术创新公司。当技术创新公司成立时，它通过向投资者发行股票筹集了100万美元的资本。最初，公司明智地利用这些资本开发创新产品并扩大市场份额。然而，随着公司的成长，它决定发行额外的股票，以筹集更多资金进行扩张，而没有明确的计划或必要性来获得如此大规模的资本流入。结果，技术创新公司拥有的资本量超过了其实际运营所需的资本。这导致了过度资本化，即发行的股票总价值远远超过公司资产和盈利潜力的内在价值。投资者开始注意到公司的收益并没有以与股票数量相同的速度增长，导致每股收益下降。过度资本化的后果可能是严重的。首先，它可能在投资者中造成一种虚假的安全感，他们可能认为公司表现比实际更好，因为市场上可用的股票数量很高。此外，当公司发现自己处于这种情况下时，他们通常难以维持股价，这可能导致投资者信心丧失和公司整体市场价值下降。此外，过度资本化还可能阻碍公司未来筹集资本的能力。如果投资者将一家公司视为过度资本化，他们可能会犹豫不决，不愿进一步投资，担心他们的投资会被稀释，并且公司将继续面临盈利困难。这可能造成一个恶性循环，使公司越来越难以吸引新的投资，最终影响其增长前景。为了避免过度资本化，公司必须仔细评估其资本需求，并确保任何新的股票发行都由真正的增长机会所证明。财务预测和战略规划在确定扩张所需的正确资本量方面发挥着关键作用。通过保持对资本管理的平衡方法，公司可以防止与过度资本化相关的陷阱，并促进可持续增长。总之，过度资本化在企业金融领域是一个重要的问题。它可能导致股东价值减少、每股收益降低以及在投资者眼中声誉受损。公司必须保持警惕并在资本管理实践中采取战略，以避免过度资本化的陷阱，并确保长期成功。另一方面，投资者在投资于表现出过度资本化迹象的公司之前，应进行彻底的尽职调查，以保护他们的财务利益。