Tool Slick

Capital Employed Calculator

Capital Employed Calculator is a tool that evaluates all the assets employed in a business

All processing happens on the client-side, locally in your browser. No data is uploaded.

Current liabilities amount
Total assets amount
Capital Employed
-50.00

History

  • 2018-06-10Tool Launched

Background

What does Capital Employed mean?
Capital Employed is the total amount of investment made for running the business. The term “Capital Employed” has a wider meaning and includes funds coming from both the owners and lenders, i.e., it covers both equity and debt.
Formula
Capital Employed = Fixed Assets + Non-current Investments + Current Assets – Current Liabilities
Example

A company’s balance sheet indicates the following:-

Equity and Liabilities

  1. Shareholder’s Funds
    1. Share Capital: $400000
    2. Reserves and Surplus: $100000
  2. Non-Current Liabilities
    1. Long-term Borrowings: $150000
  3. Current Liabilities: $50000
Total: $700000

Assets

  1. Non-Current Assets
    1. Fixed Assets: $400000
    2. Non-current Investments: $100000
  2. Current Assets: $200000
Total: $700000

According to the formula, Capital Employed is:-

  • = 400000 + 100000 + 200000 - 50000
  • = $650000