Capital allocation services


What EY capital allocation services can do for you

Today’s economic climate is forcing businesses to candidly assess their financial fitness. More than a mere review of operations, companies today must conduct objective assessments of the alignment of their business strategies to their accompanying asset portfolios. The goal is the optimal allocation of capital.

We offer insights to help you get answers:

  • Is your capital allocated appropriately across projects, functions, divisions, customers and geographies?
  • For your business, how do you know which capital optimizing measures really matter?
  • Do you use scenario modeling and other risk assessments to inform your decisions relating to capital optimization?
  • Are you able to demonstrate that your business decisions and capital deployments are founded on robust data and reasoned assumptions?

How EY's capital allocation services can help you design an optimal capital allocation strategy:

Cash culture drive: Companies are now more closely monitoring their cash — and the risks to cash flow — rather than solely on the profit and loss account. This includes evaluating business practices to optimize working capital levels needed to support the business and releasing any excess cash that could be used for other purposes, along with enhanced cash flow forecasting.

Corporate efficiency: The constantly changing business landscape demands stronger corporate governance, requiring companies to be efficient, streamlined and transparent. An increasing number of organizations are looking internally and examining both the size and complexity of their legal structures.

Proactive portfolio management: Optimal capital deployment should not be left to chance. Companies need to track measures such as return on invested capital (ROIC) — and in particular, to compare their own performance in these areas to that of competitors. In general, ongoing portfolio analysis can help ensure the company is in the right markets for today, but still anticipates the right businesses for tomorrow.

Forecasting and scenario planning

COVID-19 has upended customer demand and supply chains, as well as historical forecasting methods. Companies often lack the capital allocation processes and tools to make rapid decisions to address these changes. Learn more.


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