Answer:-
To calculate capital employed in ratio analysis, use this formula: Capital Employed = Total Assets – Current Liabilities (or) Capital Employed = Fixed Assets + Working Capital It represents the total funds invested in a business for generating profits. Fixed assets include property, equipment, and machinery, while working capital is current assets – current liabilities. Capital employed is crucial for financial analysis, especially in Return on Capital Employed (ROCE), which measures profitability. A higher ROCE indicates efficient use of capital. Always ensure accurate asset valuation and up-to-date financials for precise calculations.
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