capital employed

capital employed
Usually defined as fixed assets plus working capital, although alternative definitions are possible. Capital employed is essentially the underlying asset base a company needs to generate its profits and turnover. Dresdner Kleinwort Wasserstein financial glossary

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capital employed ˌcapital emˈployed noun [uncountable] ACCOUNTING
1. the total amount of share capital and debt that a company has and uses:

• The oil company is faced with doubling the capital employed in its refining and marketing business to £6 billion in the next 10 years.

2. return on capital employed abbreviation ROCE a company's profit for a particular year in relation to its capital; return on capital:

• Its return on capital invested was 31%, putting it in the same league as other big food companies.

• The company has a return on capital employed of 19.25%, the highest in the Indian sugar industry.

— compare return on assets, return on sales

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   Capital used by a particular company in its business. It may refer to net assets but often includes bank loans and overdrafts.
   ► See also Capital.

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capital employed UK US noun [U]
ACCOUNTING, FINANCE the total value of the assets that a company uses to produce income: »

Capital employed is down by nearly 6%.

See also RETURN ON CAPITAL EMPLOYED(Cf. ↑return on capital employed)

Financial and business terms. 2012.

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Look at other dictionaries:

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