Capital employed is the total amount of capital employed in the firm. It is often illustrated as the total assets less current liabilities (debts that are due in the near future).
Capital Employed (Assets Method) = Total Assets – Current Liabilities
Capital Employed (Equity Method) = Equity + Non-current Liabilities
- Wall Street Mojo – Capital Employed Formula – An explanation of the concept of capital employed.
- Investopedia – Capital Employed & How can I calculate capital employed from a company’s balance sheet? – Some notes on capital employed.
- Bizfluent – How to calculate capital employed – A short summary on how to calculate capital employed.