Capital Employed Calculation

Capital employed can be calculated in two ways one way is to calculate from liabilities side and other way is to calculate through asset side. Let’s look at both ways

Liabilities side
Capital employed = Equity share capital + Preference share capital + Reserves – Fictitious assets + Debentures + Long term loans
Assets Side
Capital Employed = Fixed assets + Current assets – Current liabilities (excluding Fictitious assets)

0 comments… add one

Leave a Comment