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.
Investopedia Commentary
This is a term that is frequently used, but very difficult to define. Primarily because there is no agreement as to how it should be calculated.
All definitions generally refer to the investment required for a business to function.
Related Links
Reading The Balance Sheet
Advanced Financial Statement Analysis
See also: Capital, Working Capital