Capital Employed

Business, Legal & Accounting Glossary

Definition: Capital Employed

Capital Employed

Quick Summary of Capital Employed

The value of all the assets employed in a business, including equity and preference share capital, fixed and current assets, and gross borrowings plus current assets and less current liabilities.

The most common use of capital employed is in the calculation of ‘Return on Capital Employed’ which measures the operating profit of a company as a percentage of capital employed. In effect, ROCE is telling you how efficient a company is at squeezing profit out of capital. A company that gets 20m of profit out of 200m capital employed is doing much better than one that gets 20m of profit out of 800m of capital employed.

Cite Term

To help you cite our definitions in your bibliography, here is the proper citation layout for the three major formatting styles, with all of the relevant information filled in.

Page URL
Modern Language Association (MLA):
Capital Employed. Payroll & Accounting Heaven Ltd.
May 27, 2023
Chicago Manual of Style (CMS):
Capital Employed. Payroll & Accounting Heaven Ltd. (accessed: May 27, 2023).
American Psychological Association (APA):
Capital Employed. Retrieved May 27, 2023
, from website:

Definition Sources

Definitions for Capital Employed are sourced/syndicated and enhanced from:

  • A Dictionary of Economics (Oxford Quick Reference)
  • Oxford Dictionary Of Accounting
  • Oxford Dictionary Of Business & Management

This glossary post was last updated: 26th April, 2020 | 0 Views.