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.

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