Capital Employed

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Capital employed
Capital employed has many definitions and is not easily analyzed. In general, it represents the capital investment necessary for a business to function. Consequently, it is not a measure of assets, but of capital investment: stock or shares and long-term liabilities.
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Capital Employed
the finance employed by the business. Seen from the funding side it is the shareholders funds plus long term liabilities. Seen from the asset side it is the fixed assets plus working capital.

Copyright © 2001, Ray Wright

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