invested capital


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Invested Capital

The capital that a company has invested or can invest in itself. It is calculated by adding the company's long-term debt, stock, and retained earnings. It may also apply to an individual by adding his/her net worth and long-term debt.

invested capital

An investment measure calculated by adding an investor's net worth and long-term liabilities.
References in periodicals archive ?
Invested Capital was measured as the total interest-bearing debt (notes payable plus current portion of long-term debt plus non-current portion of long-term debt) plus owners' equity.
In Net value added and profit per unit of invested capital Tamil Nadu ranks first with 0.
The measurement of return on invested capital and return on annual taxpayer investment are both summarized in the seminar casebook, Libraries Are Valuable .
A great many major companies therefore show low returns on invested capital.
Invested capital multiples can be useful in many valuation situations, because differences associated with varying debt levels are minimized.
makes a number of adjustments to accounting book value to arrive at a superior estimate of invested capital, or what might be thought of a "economic" book value.
Also, for disciplined capital allocation, productivity and efficiency, the company is focused on continuous operational improvement, incremental supply chain benefits and shareholder value built through higher returns on invested capital and total value returned to shareholders in the form of dividends and share repurchases, while for interconnected retail, Home Depot is focused on building a competitive platform across all commerce channels.