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The Capital Allocation Framework in StratEngine helps you decide how to split limited capital across competing uses, such as growth investments, returns to owners and paying down debt. It sets return hurdles, weighs risk and ends with specific allocation decisions for your company. It needs the Professional plan or pay-as-you-go.
The Capital Allocation Framework carries the Advanced badge. It’s included on the Professional plan and higher, and pay-as-you-go accounts can run it per analysis. On other plans its card shows Upgrade instead of Select. See Strategy plans and pricing.

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When to use it

  • You’re setting the annual budget or investment plan and have more opportunities than capital.
  • You need a clear rationale for why money goes to one initiative over another.
  • You’re preparing a capital plan for a board or investors.

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What you get

The Components tab has a Framework Summary and these Framework Details sections:
  • Investment Categories
  • Return Hurdles
  • Risk Profile
  • Portfolio Balance
  • Allocation Decisions
Every section is editable, and Sources lists what the analysis cited. Standard and Deep runs also fill the Momentum tab (trends affecting the company), which means Essential and higher plans, or pay-as-you-go at Standard or Deep. Deep runs add the Assumptions tab (what the analysis depends on, by risk), which means Professional, or pay-as-you-go at Deep. See Work with framework results and Analysis depth.

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Run it

1

Open Generate Framework

In the side menu, under Quick Frameworks, click Generate Framework.
2

Select Capital Allocation Framework

Find Capital Allocation Framework under Financial & Performance Analysis and click Select.
3

Fill in the business context

Complete the Business Context fields. See Generate a framework for what each one asks.Under Framework Inputs (Optional), the framework asks for Total Capital Available, Current Allocation Mix, Strategic Priorities and Return Targets and Constraints. A private company’s capital and current split usually aren’t public, so these inputs matter most for getting specific decisions.Click Continue.
4

Generate

On pay-as-you-go, pick an Analysis depth. Then click Generate Framework.