Capital Employed

View Financial Glossary Index

Definition

Capital Employed is the value of assets that allows the company to generate revenue.

Capital employed is most commonly seen when calculating 'Return on Capital Employed' (definition found in the link below):

ROCE

Formula

YCharts calculates it as:

Capital Employed = Total Assets - Total Current Liabilities

Another Calculation is:
Capital Employed = Equity + Non-Current Liabilities

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