CAPITAL EMPLOYED

[karthikarun]

The value of resource available to the company, typically comprising share capital, retained profits and resource long term loans and differed taxatio…

[lavanya]

Capital employed is primarily used by analyst to determine the return on capital employed (ROCE) is though as a profitability ratio.

[jeevithakomu]

Capital employed also known as funds employed , is the total amount of capital used for the acquisition of profits.

Eg : return on capital employed is calculated by dividing net operating profit or earnings before interest & tax by employed capital.

[Deepika Nautiyal]

The general formula used for computing capital employed is:

Capital employed = Total Assets – Current Liabilities = Equity + Non-current Liabilities

[Vishnu varadhan]

• Capital employed is the value of the assets that contribute to a company’s ability to generate revenue.
• Company has the uses of total amount for the share capital and debt.

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