Sentences with phrase «tangible capital employed»

Tangible capital employed is defined as the Net Working Capital + Net Fixed Assets.

Or a business may have low FCF because it has low owner earnings in relation to tangible capital employed and the business has to spend a lot of money to replace obsolete plant and machinery.

Here, ROC is the ratio of the pre-tax operating earnings (EBIT) to tangible capital employed (Net working capital + Net fixed capital).