Invested Capital is defined as the sum of the total cash investment that shareholders and debtholders have made in a company or business or a project.
The formula for calculation of Invested Capital is given by:
Invested capital = Operating Net Working Capital + Net PP&E + Capitalized Operating Leases + Other Operating Assets + Operating Intangibles – Other Operating Liabilities – Cumulative Adjustment for Amortization of R&D
It can be also calculated from an alternative method
Invested capital = Total Debt and Leases+ Total Equity and Equity Equivalents – Non-Operating Cash and Investments.