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Ratio analysis
Financial Management
Is net asset is equal to capital employed?
Answers (5)
Pranav Connecting...
Net asset we determined for a particular date whereas capital employed for particular period of time .So it need not be equal.
They are different concept , capital employed includes long term debt.
Net assets are the value of a company's assets minus its liabilities. It is calculated ((Total Fixed Assets + Total Current Assets) â?? (Total Current Liabilities + Total Long Term Liabilities)) Capital employed is derived by subtracting current liabilities from total assets; or alternatively by adding noncurrent liabilities to owners' equity.
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