The simplest presentation of capital employed is total assets minus current liabilities.

Explore total current assets, how to calculate them, and why they're important for evaluating a company's liquidity and financial health.

How to calculate the current ratio You can calculate the current ratio by dividing a company’s total current assets by its total current liabilities.

Key Points Learn to calculate total expenses by subtracting net income from total revenue. Net income is found by adjusting owners' equity for profits, losses, and capital changes.

To demonstrate, we can calculate a company's total expenses based on its total revenue from the income statement and its owners' equity from the balance sheet.