Invested Capital

Definition: Invested Capital is the total amount of money a company has raised by issuing securities to equity investors and creditors that is currently being …

Invested Capital is the total amount of money a company has raised by issuing securities to equity investors and creditors that is currently being used to fund operations. The most common formula is: Invested Capital = Total Debt + Total Equity − Cash and Cash Equivalents. Some analysts use an operating definition: Net Working Capital + Net Property, Plant and Equipment + Intangibles. Invested Capital is the denominator of Return on Invested Capital (ROIC) and is the capital base against which the cost of capital (WACC) is compared in EVA analysis.