Capital Employed & Equity

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jewels.p
jewels.p Registered Posts: 1,758 Beyond epic contributor 🧙‍♂️
in AAT Level 4 (Level 8 in Scotland)
What exactly is the difference. I googled it but too complicated explanations get me muddled. Are they the same thing?

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  • Esme
    Esme Registered Posts: 711 Epic contributor 🐘
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    Capital employed includes equity and non current liabilities.
  • mini_schnauzer
    mini_schnauzer Registered Posts: 347 Dedicated contributor 🦉
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    Capital Employed = Total Assets − Current Liabilities

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