Invested capital equals the sum of all cash that has been invested in a company over its life without regard to financing form or accounting name. It is the total of investments in the business from which operating revenue is derived. It can be calculated two mathematically equivalent ways as shown in Figure 1. Figure 1: Formulae for Invested Capital * NIBCLs – stands for Non-Interest-Bearing Current Liabilities * * Includes leased assets Source: New Constructs, ...
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