Capital employed is the amount of money that is deployed or invested in a business to support its ongoing operations. There are several definitions of the term, but the most common involves subtracting a company's current liabilities from its total assets.
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Things you need
- Company financial statements
Find the company's balance sheet in its financial statements.
Look for the assets section in the balance sheet. It is usually the first section.
Look for the "Total Assets" number at the bottom of the assets section. For example, if the company has £32 million in total assets, write that number down.
Locate the liabilities section of the balance sheet. It is usually right after or below the assets section.
Find the current liabilities section, which should come first.
Find the "Total Current Liabilities" number and write it down. For example, it might be £13 million.
Subtract £13 million from £32 million to get £19 million. This means that £19 million is the capital employed at this particular company.
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