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Meaning of capital employed

 

 

 

Capital employed

 

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Business glossary

 

Meaning of term capital employed :

 

Capital employed is the total amount of capital that the firm has and is using to produce their goods and services. It is the total figure on the balance sheet and can be defined in a variety of ways. The most common is the sum of the fixed assets and the working capital i.e. current assets less current liabilities. It is the total of all funds invested in the firm from shareholder's funds, borrowing and past profits.

 

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Source : http://business-tes.wikispaces.com/file/view/Glossary.doc

 

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Capital employed

 

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Meaning of term capital employed

 

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