Invested Capital
Invested capital refers to the total capital that a company has invested in its business operations. This includes equity, debt, and other forms of financing used to fund the company's assets and operations. Invested capital is a key metric for understanding a company's capital structure and evaluating its financial performance, particularly in terms of generating returns for investors.
Key Takeaways
- Total capital invested in business operations.
- Includes equity, debt, and other financing.
- Key for understanding capital structure.
- Important for evaluating financial performance.