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capital employed

   Also found in: Financial, Wikipedia 0.04 sec.

capital employed

In business, the total assets of a company (excluding intangibles, such as goodwill) less its current liabilities (including overdrafts, short-term loans, trade and other creditors).



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IBM Forest and Paper Innovation Center, part of IBM Business Consulting Services, is celebrating its first year of operation by demonstrating how an on-demand business model can increase the after tax return on capital employed (ROCE) in the forest industry from a typical 5% up to as high as 22%.
This pressures senior management to ensure that financial management methods are in place to optimize returns on capital employed commensurate with the risks taken--from insurance, credit and market risks to operational and strategic risks.
The broadest and best definition, however, and the second example, is return on capital employed (ROCE).
 
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