Market Capitalization vs Invested Capital
Market capitalization (or market cap) is the total value of the shares outstanding of Alcoa Inc. It is equal to Alcoa current share price times the number of Alcoa Inc outstanding shares. Represents the product of Total Shares (Basic) , Adjusted Share Price and Entity Share Factor.
Invested capital represents the total cash investment that shareholders and debt holders have contributed to Alcoa Inc. There are two different methods for calculating Alcoa Inc invested capital: operating approach and financing approach. Understanding ##company1# invested capital allows investors to to calculate measures of performance such as return on invested capital or return on capital employed. Invested capital is an input into the calculation of Return on Invested Capital
, and is calculated as: Total Debt
plus Total Assets
minus Goodwill and Intangible Assets
minus Cash and Equivalents
minus Current Liabilities
. Please note this calculation method is subject to change.