ylikapitalisoida
ylikapitalisoida is a Finnish verb that translates to "to overcapitalize" in English. This term is primarily used in financial and business contexts, referring to a situation where a company's capital structure is deemed excessive relative to its current earnings potential or asset value. In essence, it means there is more capital invested in the business than is economically justified or necessary for its operations.
The reasons for overcapitalization can vary. It might arise from a period of rapid growth and significant
Overcapitalization can have several negative consequences. It can lead to a lower return on equity (ROE) and