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 Total Invested Capital in Fathom?
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This feature is included with Total Invested Capital can be seen within a company’s Balance Sheet when viewed in the 'Separation of Operations and Finance' format. You can see this in:
The 'Separation of Operations and Finance' Balance Sheet format illustrates how Total Invested Capital is calculated as it is listed along with 'Total Current Assets', 'Total Operating Liabilities', and 'Total Non-Current Liabilities'.
Total Invested Capital is also used within formulas for some of Fathom’s KPIs, which are only accessible to companies on a Fathom Pro plan. For a detailed breakdown of KPIs and their formulas see our KPI Glossary.
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