Capital Employed

Capital Employed is the value of all resources available to the company, typically comprising Share Capital, Retained Profits and Reserves, Long-Term Loans and Deferred Taxation. Viewed from the Balance Sheet, Capital Employed comprises Fixed Assets, Investments and the net investment in Working Capital (Current Assets less Current Liabilities). In other words: the total long-term funds invested in or lent to the business and used by it in carrying out its operations.

Updated On: 09.10.04