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eingesetztes Kapital

English translation: capital employed

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GLOSSARY ENTRY (DERIVED FROM QUESTION BELOW)
German term or phrase:eingesetztes Kapital
English translation:capital employed
Entered by: Timothy Wood
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22:58 Nov 8, 2007
German to English translations [PRO]
Bus/Financial - Accounting / ROTA specifications
German term or phrase: eingesetztes Kapital
I've used the term "invested capital", but my intuition needs some backing.
Can anyone verify this translation?

1. Was bedeutet ROTA:

Es handelt sich um eine der meist verwendeten Finanzkennzahlen überhaupt, und zwar die Rentabilität auf das eingesetzte Kapital.

Der ROTA beschreibt die Verzinsung des eingesetzten (gebundenen) Kapitals (Umlaufvermögen + Anlagevermögen = Assets) in Bezug auf das betriebliche Ergebnis (EBIT – Ergebnis vor Zinsen und Steuern) je Profitcenter.

In general, ROTA involves a financial ratio that is used quite frequently, and especially the profitability of invested capital.

ROTA is the yield on invested (fixed) capital (Current assets + Fixed assets = Assets) over the operational profit (EBIT – profit before interest and tax) per profit center.

Does this sound correct?
Timothy Wood
United States
Local time: 08:04
capital employed
Explanation:
In my opinion your translation sounds quite good. ROTA = Return on Total Assets; it is only logical that that total assets are also invested assets ( term definition @ http://www.investopedia.com/terms/r/return_on_total_assets.a...

I would just replace "yield" by "return" (since "return" is contained in the acronym's written meaning) and also "(fixed) capital)" would IMHO be "(employed) capital".

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Note added at 6 hrs (2007-11-09 05:47:32 GMT)
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or maybe: "...employed (fixed) capital..." for "...eingesetzten (gebundenen) Kapitals..."

Your "...invested (fixed) capital..." is also okay.
Selected response from:

Dipl.-Kfm. Bernhard Aicher MBA
Local time: 16:04
Grading comment
Thank you for your reply and your confidence in my previous translation. I appreciate the notes/comments from Steffen and RobinB as well.
2 KudoZ points were awarded for this answer

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Summary of answers provided
4 +2capital employed
Dipl.-Kfm. Bernhard Aicher MBA


  

Answers


6 hrs   confidence: Answerer confidence 4/5Answerer confidence 4/5 peer agreement (net): +2
capital employed


Explanation:
In my opinion your translation sounds quite good. ROTA = Return on Total Assets; it is only logical that that total assets are also invested assets ( term definition @ http://www.investopedia.com/terms/r/return_on_total_assets.a...

I would just replace "yield" by "return" (since "return" is contained in the acronym's written meaning) and also "(fixed) capital)" would IMHO be "(employed) capital".

--------------------------------------------------
Note added at 6 hrs (2007-11-09 05:47:32 GMT)
--------------------------------------------------

or maybe: "...employed (fixed) capital..." for "...eingesetzten (gebundenen) Kapitals..."

Your "...invested (fixed) capital..." is also okay.

Dipl.-Kfm. Bernhard Aicher MBA
Local time: 16:04
Specializes in field
Native speaker of: Native in GermanGerman
PRO pts in category: 6
Grading comment
Thank you for your reply and your confidence in my previous translation. I appreciate the notes/comments from Steffen and RobinB as well.

Peer comments on this answer (and responses from the answerer)
agree  Steffen Walter: "eingesetztes (gebundenes) Kapital" = employed (tied-up) capital / capital employed (tied up)
2 hrs

agree  RobinB: OK with "capital employed" (because logically total net assets = total capital) and with Verzinsung = return. Note to Timothy: ROTA is normally "Gesamtkapitalrentabilität" (!) in German. You might also want to use a simpler definition of ROTA in English.
4 hrs
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Changes made by editors
Nov 11, 2007 - Changes made by Timothy Wood:
Created KOG entryKudoZ term » KOG term


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