invested capital


Also found in: Legal, Acronyms, Wikipedia.

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.
However, the net value added (1.97) and profit per unit of invested capital (1.65) have been found to be highest in Punjab.
For immediate annuities, every payment received consists of both income and return of invested capital. The latter is tax flee, until the entire basis in the contract is recovered.
If we replace ROI with its equivalent of earnings (E) divided by invested capital (IC) or E/IC, we arrive at:
The World Tourism & Travel Council estimates that in 2004, travel and tourism generated US$9.03 billion in economic activity on the island, provided 83,186 direct and indirect jobs, and US$1.3 billion in invested capital. However, only 511 new rooms were added to the island's hotel-room inventory over the past four years.
Mutual funds, for instance, take a slice of your invested capital every year in the form of expenses and fees.
If it makes them feel any better, economists and policy makers seem equally uncertain what to make of China's rapid growth and whether to welcome its ability to provide return on invested capital or fear its ability to act as a sponge for the world's wealth and resources.
Poor profit margins and abysmal returns on invested capital among some automakers have prompted a few top executives to ask exactly that.
Return on taxpayer investment and return on invested capital are easily applied to almost any publicly supported institution.
He finds little evidence of such extortion, however, pointing out that in remote rural areas supplying credit was a risky business whose vulnerability and volatility required adequate recompense if it was to continue; that rates of return to the Spanish officials and their backers on invested capital were only moderate, at an average 10-20 per cent; and that Indians often defaulted on their advances.
Figure 3 shows the project's impact on the mill, and the resulting impact on its return on invested capital. Although returns improve at the mill, the positive impact of the project is not enough to turn the mill around.
Since its inception, MCG has funded over 200 deals with over $2 billion in invested capital.