Definition of Capital-employed analysis - Finance dictionary
Capital-employed analysis(See Chapter 4 of the Vernimmen)
In the capital-employed analysis, the Balance sheet shows all the uses of funds for the company's operating cycle and analyses the origin of its sources of funds. A capital-employed analysis of the Balance sheet serves three main purposes: to understand how a company finances its operating assets; to compute the Rate of return on capital employed; and as a first step to valuing the Equity of a company as a going concern.
Capital-employed analysis(See Chapter 4 of the Vernimmen)
In the capital-employed analysis, the Balance sheet shows all the uses of funds for the company's operating cycle and analyses the origin of its sources of funds. A capital-employed analysis of the Balance sheet serves three main purposes: to understand how a company finances its operating assets; to compute the Rate of return on capital employed; and as a first step to valuing the Equity of a company as a going concern.
Capital-employed analysis(See Chapter 4 of the Vernimmen)
In the capital-employed analysis, the Balance sheet shows all the uses of funds for the company's operating cycle and analyses the origin of its sources of funds. A capital-employed analysis of the Balance sheet serves three main purposes: to understand how a company finances its operating assets; to compute the Rate of return on capital employed; and as a first step to valuing the Equity of a company as a going concern.