DEFINITION of 'Invested Capital'
The total amount of money that was endowed into a company by the shareholders, bondholders and all other interested parties. Invested capital is often determined by adding the total debt and lease obligations to the amount of equity in the firm and then subtracting the nonoperating cash and investments. Invested capital must be calculated, and there are multiple ways to calculate this figure. It will not be listed on the company's financial statement.
INVESTOPEDIA EXPLAINS 'Invested Capital'
Companies must earn more than it costs them to use the invested capital provided by bondholders, shareholders and other financing sources, in order to earn an economic profit. Knowing a company's invested capital allows investors to use this metric to calculate measures of performance such as return on invested capital, economic value added and return on capital employed.

Return On Equity  ROE
The amount of net income returned as a percentage of shareholders ... 
Collateralized Loan Obligation ...
A security backed by a pool of debt, often lowrated corporate ... 
Return On Capital Employed (ROCE)
A financial ratio that measures a company's profitability and ... 
Capital
1) Financial assets or the financial value of assets, such as ... 
Economic Value Added  EVA
A measure of a company's financial performance based on the residual ... 
Asset
1. A resource with economic value that an individual, corporation ...

Options & Futures
Find Quality Investments With ROIC
Return on invested capital is a great way to measure the true value produced by a company. Learn to use the ROIC metric and increase your chances of finding successful investments. 
Markets
Understanding Economic Value Added
Discover the simplicity of this important valuation metric. We reveal its underlying ideas and examine each of its components. 
Fundamental Analysis
What's a Tangible Asset?
Tangible assets are property owned by a business that can be touched  they physically exist. Examples include furniture and fixtures, computer hardware, delivery equipment, leasehold improvements ... 
Fundamental Analysis
Cash Flow From Operating Activities
Cash flow from operating activities is a section of the Statement of Cash Flows that is included in a company’s financial statements after the balance sheet and income statements. 
Fundamental Analysis
What are the components of shareholders' equity?
Understanding company valuation figures, such as shareholders' equity, can be a powerful tool in assessing the financial strength of a business. 
Fundamental Analysis
What is the difference between the acid test ratio and working capital ratio?
Using liquidity ratios to determine the financial stability of a company is an important tool to accounting professionals and investors. 
Fundamental Analysis
What are some examples of return on investment capital?
Read about some basic examples of return on investment capital for publicly traded companies and companies that have a handful of investors. 
Bonds & Fixed Income
What is the difference between the yield of stock and the yield of a bond?
Explore and understand the various meanings of the investment term "yield" as it is applied to equity investments and bond investments. 
Fundamental Analysis
What is the difference between cash flow and EBIDTA?
Understand the difference between cash flow and EBITDA, and find out why cash flow is a more comprehensive metric for evaluating a company's financial health. 
Fundamental Analysis
How do you use Microsoft Excel to calculate liquidity ratios?
Learn how to calculate the most common liquidity ratios in Microsoft Excel by inputting financial figures from a company's balance sheet.