how can businesses optimize their capital employed 
businesses can optimize capital employed by improving asset efficiency managing working capital effectively refinancing debt to lower costs and investing in projects with higher returns the bottom linecapital employed or funds employed is the total amount of capital that a company uses in capital investments to generate profits capital investments include stocks and long term liabilities as well as the value of the assets that are used in operations because of this capital employed can provide a snapshot of how effectively the company is using its money capital employed is calculated by subtracting current liabilities from total assets total assets are the net value of all fixed assets plus all capital investments and current assets you can also find capital employed by adding noncurrent liabilities to owners equity analysts use capital employed to calculate return on capital employed roce this shows the return on a company s investment a higher roce indicates a more efficient company with more successful capital investments 