Invested Capital
The dollar capital tied up in a business's operations -- typically calculated as net working capital plus net property/plant/equipment plus other operating long-term assets, or equivalently as total equity plus interest-bearing debt minus excess cash. Invested capital is the denominator of ROIC and the base on which WACC is charged. Different practitioners use slightly different definitions (lease capitalization, goodwill treatment, R&D capitalization), but the principle is the same: measure the capital the business actually employs to generate operating profit.
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