capital employed definition

capital employed

Total capital harnessed in a firm's fixed and current assets. Viewed from the funding side, it equals stockholders' funds (equity capital) plus long-term liabilities (loan capital). Viewed from the asset side, it equals fixed assets plus working assets.

capital employed is in the Accounting & Auditing, Banking, Commerce & Finance, Economics, Politics, & Society and Investing subjects.

capital employed appears in the definitions of the following terms: loan capital, return on investment (ROI), inflation accounting, accounting rate of return (ARR), owners' equity and Modiglani-Miller hypothesis

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