Net Worth & capital Employed
This query is : Resolved
Querist : Anonymous
Querist :
Anonymous
(Querist)
09 June 2010
Is there any diffenance in Net worth & Capital employed? also tell me meaning of these two terms?
09 June 2010
Net worth is
Total Assets - Total Liabilities
i.e. Owners' Funds including Retained Earnings.
Net worth is an important determinant of the value of a company, considering it is composed primarily of all the money that has been invested since its inception, as well as the retained earnings for the duration of its operation.
Capital Employed is
Fixed Assets + Current Assets - Current Liabilities
i.e. Owners' Funds + Borrowed Long Term Funds
Capital employed is the value of the assets that contribute to a company's ability to generate revenue.
Total Assets - Total Liabilities
i.e. Owners' Funds including Retained Earnings.
Net worth is an important determinant of the value of a company, considering it is composed primarily of all the money that has been invested since its inception, as well as the retained earnings for the duration of its operation.
Capital Employed is
Fixed Assets + Current Assets - Current Liabilities
i.e. Owners' Funds + Borrowed Long Term Funds
Capital employed is the value of the assets that contribute to a company's ability to generate revenue.
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