Capital allocation
Capital allocation is the set of choices management makes with the cash a business generates: reinvest in operations, buy another business, repay debt, pay a dividend, or repurchase shares. The label describes the decision, not whether management is automatically disciplined or skillful.
How the Moat Index measures this
The Capital Allocation sub-score uses owner-earnings growth and share-count behavior across up to the ten most recent annual observations, as specified in the methodology. It does not score management biographies, stated intentions, or acquisition narratives. This reader-facing label replaces the retired house label; the calculation and stored data key are unchanged.