Define: Average Capital Employed

How is Average Capital Employed defined in a legal contract?

• Average Capital Employed means the sum of Net Capital Employed at several specific dates, divided by a [number]. Seen in 9 SEC filings
• Average Capital Employed means the [number] point average of the prior fiscal year end and the quarterly fiscal year current Capital Employed balances. Seen in 3 SEC filings
• Average Capital Employed means the Beginning Capital Employed plus the Ending Capital Employed, divided by two. Seen in 3 SEC filings
• Average Capital Employed means for any fiscal year, the average of five numbers consisting of the Capital Employed as of the last day of the fiscal year and as of the last day of the four preceding fiscal quarters. Centred on the concept of 'Capital Employed' the definition also references total assets, liabilities other than those related to money borrowed, and capital lease obligations. Seen in 2 SEC filings
• Average Capital Employed means for any fiscal year, the arithmetic mean of the Capital Employed at the opening of business on the first day of the fiscal year and at the close of business on the last day of each fiscal quarter ending within the fiscal year. Seen in 2 SEC filings
• Average Capital Employed means the sum of Net Capital Employed at various year ends, divided by four. Seen in 2 SEC filings
• Average Capital Employed means for a given fiscal year during the Performance Measurement Period, the sum of the company’s average beginning and ending: accounts receivable; plus inventory; minus accounts payable; plus net fixed and intangible assets; plus investments in Affiliates. Seen in 1 SEC filing

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Which definition should you use?

🤔 Our AI Legal Assistant has combined and improved the above descriptions to create market-standard 'Genie definitions' below, with guidance on which documents and which industry to use for each.

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Genie Definition 1

• Average Capital Employed means the total of Net Capital Employed at specified periods, divided by the count of those periods.

Relevant Contract Type

• Financial Reporting Agreement
• Investment Agreement

Relevant Circumstances

• When assessing a company's performance over a specific period of time
• When determining distribution of dividends to shareholders

Relevant Sectors

• Accounting
• Investment Banking

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Genie Definition 2

• Average Capital Employed means the total of Beginning and End Capital Employed, divided by two.

Relevant Contract Type

• Financial Audit Contract
• Joint Venture Agreement

Relevant Circumstances

• When assessing initial and final capital employed in a joint venture
• In evaluating financial health of an organization during audits

Relevant Sectors

• Audit, Tax and Advisory Services
• Joint Ventures

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Genie Definition 3

• Average Capital Employed means the mean of Capital Employed at start and end of business across fiscal quarters within a fiscal year.

Relevant Contract Type

• Accounting Services Agreement
• Business Services Agreement

Relevant Circumstances

• When analyzing financial performance over a fiscal year
• To assist in financial planning and budgeting

Relevant Sectors

• Financial Services
• Professional Services

Genie Definition 4

• Average Capital Employed means a sum of average beginning and ending account balances, composed of various assets and liabilities, within a specified fiscal year.

Relevant Contract Type

• Asset Purchase Agreement
• Profitability Analysis Contract

Relevant Circumstances

• When performing profitability analysis or financial forecasting
• When determining pricing for purchase of assets

Relevant Sectors

• Asset Management
• Financial Planning

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