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Rücklagenbildung

reserve formation

noun RUEK-lah-gen-bil-doong Rare
People & Society Money

Also means

building up reserves

Usage Note

Rücklagenbildung is the process of retaining profits as reserves in a company or public budget rather than distributing them. Prudent Rücklagenbildung strengthens the equity base and provides buffers for future losses or investment.

Examples

"Die Rücklagenbildung aus Gewinnen der Vorjahre ermöglichte die Investition ohne Fremdkapital."

Natural Translation

Building up reserves from prior years' profits made the investment possible without borrowed capital.

Literal Translation

The reserve-formation from profits of-the prior-years enabled the investment without borrowed-capital.

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