capital employed


capital employed
Either the sum of the shareholders' equity in a company and its long-term debt or the fixed assets of a company plus its net current assets. Although this term is neither legally defined nor required to be disclosed in a balance sheet, it is an important element of ratio analysis, particularly in the calculation of return on capital employed

Accounting dictionary. 2014.

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  • Capital employed — has many definitions and is not easily analysed. In general, it represents the capital investment necessary for a business to function. Consequently, it is not a measure of assets, but of capital investment: stock or shares and long term… …   Wikipedia

  • capital employed — Usually defined as fixed assets plus working capital, although alternative definitions are possible. Capital employed is essentially the underlying asset base a company needs to generate its profits and turnover. Dresdner Kleinwort Wasserstein… …   Financial and business terms

  • capital employed — /ˌkæpɪt(ə)l ɪm plɔɪd/ noun an amount of capital consisting of shareholders’ funds plus the long term debts of a business. ⇒ return on capital employed …   Dictionary of banking and finance

  • capital employed — Either the sum of the shareholders equity in a company and its long term debt or the fixed assets of a company plus its net current assets Although this term is neither legally defined nor required to be disclosed in a balance sheet, it is an… …   Big dictionary of business and management

  • capital employed — naudojamas kapitalas statusas T sritis Gynyba apibrėžtis Suma, gauta iš organizacijos ilgalaikio ir trumpalaikio turto piniginių verčių atėmus trumpalaikių įsipareigojimų vertę. atitikmenys: angl. capital employed šaltinis NATO mokymų ir pratybų… …   Lithuanian dictionary (lietuvių žodynas)

  • Capital Employed — 1. The total amount of capital used for the acquisition of profits. 2. The value of all the assets employed in a business. 3. Fixed assets plus working capital. 4. Total assets less current liabilities. This is a term that is frequently used, but …   Investment dictionary

  • Return on capital employed — (ROCE) is used in finance as a measure of the returns that a company is realising from its capital employed. It is commonly used as a measure for comparing the performance between businesses and for assessing whether a business generates enough… …   Wikipedia

  • Return on Average Capital Employed - ROACE — A financial ratio that shows profitability compared to investments made in new capital. Return on average capital employed is calculated as: EBIT Average Total Assets Average Current Liabilities Total Assets Current Liabilities = Capital Employed …   Investment dictionary

  • return on capital employed — ( ROCE) Indicator of profitability of the firm s capital investments . Determined by dividing Earnings Before Interest and Taxes by (capital employed plus short term loans minus intangible assets). The idea is that this ratio should at least be… …   Financial and business terms

  • Return on Capital Employed — Der Return on Capital Employed (ROCE) ist eine betriebswirtschaftliche Kennzahl die misst, wie effektiv und profitabel ein Unternehmen mit seinem eingesetzten Kapital umgeht und stellt quasi eine Weiterentwicklung der Gesamtkapitalrentabilität… …   Deutsch Wikipedia