Companies generally allocate capital through several key avenues:
Internal Investments: Funding research and development, upgrading technology, or expanding operations. Mergers and Acquisitions (M&A): Acquiring other businesses to gain market share or diversify offerings. Dividends and Share Buybacks: Returning capital to shareholders in the form of dividends or repurchasing shares to increase shareholder value. Debt Repayment: Using excess cash to pay down existing debt, reducing interest expenses and improving financial stability.