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Total Assets Employed Is the Total Assets Available Minus the Sum

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Total assets employed is the total assets available minus the sum of idle assets and assets purchased for future expansion.


Definitions:

AFN Formula

The Additional Funds Needed (AFN) formula is used to determine the additional amount of external financing a company will need for future growth and expansion.

Capital Intensity Ratio

The dollar amount of assets required to produce a dollar of sales. The capital intensity ratio is the reciprocal of the total assets turnover ratio.

AFN Formula

The Additional Funds Needed formula, used to calculate the additional working capital required to support a firm's growth in sales.

Debt/Assets Ratio

A financial metric indicating the proportion of a company's assets that are financed by debt.

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