Capital allocation means: what does the company do with the money it earns? Invest wisely, pay down debt, make fair acquisitions, pay dividends or buy back shares – or waste it?
Why does this matter?
A company can run a great business and still deploy its money badly – for example through overpriced takeovers that are later written off. Wise allocation compounds the value per share over the years; poor allocation quietly destroys it.
What MoatLens looks at:
Does the money flow where it creates the most value? Are acquisitions sensible and fairly priced? Are buybacks done at reasonable prices? Disciplined use marks it up, wasteful use marks it down.
In MoatLens this explanation sits right next to the number — one tap away. And you see the ten-year trend instead of a single value.
