Capital employed is a term used in business and accounting to describe the total amount of money used to finance a company's operations. This includes money from loans, equity investments, and other sources. The capital employed can be used to finance a company's assets, such as property, equipment, and inventory. It can also be used to finance a company's operations, such as payroll and other expenses. The capital employed can be a valuable metric for investors and analysts to assess a company's financial health and its ability to generate profits. What is ROCE also known as? ROCE, or return on capital employed, is a financial ratio that measures the profitability of a company in relation to the capital it has invested. It is also known as return on invested capital (ROIC).
What is capital employed also known as? Capital employed is a term used in financial accounting and analysis. It refers to the total value of a company's assets that are used to generate revenue. This includes money that is invested in tangible assets such as property, plant, and equipment, as well as intangible assets such as patents and copyrights. It also includes money that is borrowed and used to finance operations.
Capital employed is also known as invested capital, or funds employed.
What is the formula for calculating capital employed?
The formula for calculating capital employed is:
Total Assets - Total Liabilities
This can be represented as:
A - L = CE
Where:
A = Total Assets
L = Total Liabilities
CE = Capital Employed