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Formula for Total Invested Capital
Total Invested Capital =
- Total Operating Liabilities (i.e. Current Liabilities excluding any debt)
+ Total Non-Current Assets |
Fathom uses Total Invested Capital as a variable to calculate a business's Activity Ratio, Economic Profit, and Return on Capital Employed (ROCE). All three metrics measure the efficiency or profitability of a business's invested capital.
Where can I see the numbers?
The best way to determine how Total Invested Capital is calculated is to go to the Financial Statements tool in Fathom.
In the 'Balance Sheet' view, select 'Separation of Operations and Finance' as the layout. 'Total Invested Capital' will then be listed in the Balance Sheet along with 'Total Current Assets', 'Total Operating Liabilities', and 'Total Non-Current Liabilities'.
Additional knowledge & common questions