Capital Employed Law and Legal Definition

Capital employed usually resembles the total net assets utilized in a business. It means the financial resources that are essential for a business to continue functioning and engage in the important task of revenue generation. Since capital employed can be defined in a variety of ways, alternative definitions are possible. Some other definitions for capital employed are:

Capital employed means the investment needed to enable a business to operate or it means the fixed assets plus working capital or current assets minus current liabilities.

Capital employed means the total resources utilized and includes working capital, property, plant and equipment and intangible assets, assets held for sale, equity investments, and other assets and liabilities.