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Capital Employed Calculator

LAST UPDATE: August 24th, 2018

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Capital Employed (Assets Method)

Capital Employed (Equity Method)

What is Capital Employed?

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).

Formula

Capital Employed (Assets Method) = Total Assets – Current Liabilities

Capital Employed (Equity Method) = Equity + Non-current Liabilities

Example

Assets Method – A company has total assets of $50,000 and current liabilities of $10,000.

Capital Employed (Assets Method) = $50,000 – $10,000 = $40,000

Equity Method – A company has equity of $50,000 and non-current liabilities of $75,000.

Capital Employed (Equity Method) = $50,000 + $75,000 = $125,000

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