Capital employed: Difference between revisions
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An accounting measure of the total value of resources available to management for use in the business. | An accounting measure of the total value of resources available to management for use in the business. | ||
In simple terms, it is defined as: | |||
Equity + Debt | |||
''or'' | |||
Equity + Non-current liabilities | |||
The detailed definition can vary in different contexts. | |||
For this reason it is important to be clear about it, and to state it expressly. | |||
== See also == | == See also == | ||
* [[Capital market]] | * [[Capital market]] | ||
* [[Debt]] | |||
* [[Equity]] | |||
* [[Non-current liabilities]] | |||
* [[Return on capital employed]] | * [[Return on capital employed]] | ||
Revision as of 13:39, 25 June 2016
An accounting measure of the total value of resources available to management for use in the business.
In simple terms, it is defined as:
Equity + Debt
or
Equity + Non-current liabilities
The detailed definition can vary in different contexts.
For this reason it is important to be clear about it, and to state it expressly.
