Capital Employed


Capital Employed is an important financial metric often used when calculated and analyzing ratios. Capital employed can be seen as the value of the assets that add to a company's ability to generate revenues, or, equivalently, its liquidity. That is, capital employed represents the necessary amount of capital that a company invests in its business to continue its operations. Capital employed is commonly used to calculate a company's return on capital employed. GAAP does not require companies to report capital employed on their balance sheet.

Capital Employed = Total Assets - Current Liabilities

- Or -

Capital Employed = Fixed Assets + Working Capital

Wikinvest © 2006, 2007, 2008, 2009, 2010, 2011, 2012. Use of this site is subject to express Terms of Service, Privacy Policy, and Disclaimer. By continuing past this page, you agree to abide by these terms. Any information provided by Wikinvest, including but not limited to company data, competitors, business analysis, market share, sales revenues and other operating metrics, earnings call analysis, conference call transcripts, industry information, or price targets should not be construed as research, trading tips or recommendations, or investment advice and is provided with no warrants as to its accuracy. Stock market data, including US and International equity symbols, stock quotes, share prices, earnings ratios, and other fundamental data is provided by data partners. Stock market quotes delayed at least 15 minutes for NASDAQ, 20 mins for NYSE and AMEX. Market data by Xignite. See data providers for more details. Company names, products, services and branding cited herein may be trademarks or registered trademarks of their respective owners. The use of trademarks or service marks of another is not a representation that the other is affiliated with, sponsors, is sponsored by, endorses, or is endorsed by Wikinvest.
Powered by MediaWiki