what is capital employed?

Dear Student,

Capital Employed is the total amount of capital used in the business to yield profit. It can be calculated as:

Capital Employed =  Share Capital + Reserve and Surplus + Long-term Loans – Miscellaneous Expenditures – Profit and Loss (Dr.) – Non-Operating Assets

 OR

 =Net Fixed Assets + Working Capital

 OR

 =Total Assets - Current Liabilities  

Regards