Capital employed

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

• Capital market
• Debt
• Equity
• Non-current liabilities
• Return on capital employed