ABSTRACT
In our approach to company accounts, when looking at uses of funds, we have defined ‘net assets’ (= ‘capital employed’) as total assets less current liabilities. That is the same as fixed assets plus net working capital (= fixed assets plus current assets less current liabilities.) But there is one important refinement: we ‘add back’ short-term borrowing. So in effect we treat short-term borrowing as being part of ‘capital employed’.
