Invested Capital
The total money put into a business by lenders and shareholders that is funding its operations.
What it is
Invested capital is the sum of capital a company has raised and deployed to run its business — broadly, interest-bearing debt plus shareholders' equity, adjusted to focus on operating assets. It represents the base on which the company must earn a return. It is the denominator in return on invested capital (ROIC).
Why it matters
Comparing the profit a company generates (NOPAT) to its invested capital shows how efficiently it uses money — the essence of ROIC. A business that earns a high return on invested capital, well above its WACC, is creating value and often signals a durable competitive advantage.
How it's calculated
Two equivalent approaches. The financing view: total debt plus equity, minus non-operating cash and investments. The operating view: net working capital plus net property, plant and equipment plus other operating assets. Both should reconcile to roughly the same figure.
How Quintarthai uses it
Balance-sheet items behind invested capital — debt, equity, and cash — appear on each company's Financials tab, alongside the ROIC figures that use it.