Capital employed
Also called: invested capital
The money provided to a business by shareholders and lenders, usually measured as shareholders' equity plus borrowings.
Some analysts measure it as total assets minus current liabilities, which gives a similar figure. Excluding cash the business does not need shows the capital tied up in operations.
Learn more in these lessons
- Return on capital employed (ROCE)What does ROCE measure, and how is it different from ROE?
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