Explain why net assets has the same value as capital employed?

Net assets and capital employed represent the same value because both measure the total resources available for a business to generate profits. Net assets are calculated as total assets minus total liabilities, reflecting the equity portion available to shareholders. Capital employed, on the other hand, is defined as total assets minus current liabilities, which effectively captures the long-term funds utilized in the business. Since both concepts ultimately track the same underlying financial resources, they yield equivalent values.