Invested Capital, Total Assets (ROIC, ROA)

CFA Level I
#1

Hello everybody,

what is the difference between Invested Capital and Total Assets?

Total Assets = whole left side of a balance sheet include cash?

Invested Capital = Equity + Debts?

In many cases I see: Total Assets > Invested Capital

But shouldn’t be Assets equal to Capital?

Best regards

MikeLuke

#2

Assets = Liabilities + Equity

Not all liabilities are debt, however. Accounts Payable, Taxes Payable, Unearned Revenue, Wages Payable, Interest Payable, and so on are not debt because they don’t bear interest.

#3

Thank you very much.

#4

My pleasure.