Invested capital = W/C + Net F.A. here, what is W/C and Net F.A.? Thanks.
Working capital and Net fixed assets.
OR long term debt + equity
what about short term debt?
short term is considered current liability (supposedly for this reading), thus is included in your working capital!!
assets - CL
it’s easy to see that since CA+FA=CL+LT+E CA-CL+FA=LT+E = by definition = invested capital (CA-CL = WC)