If the company uses total assets employed, there will be no motivation for the managers to make better use of the assets that are currently not employed.
If the company does not care what the financing of the assets used is, the company should use total assets available as the denominator in ROI. This will mean that managers are expected to use all of the assets to generate return for the company.
By using working capital in this measure the company is excluding assets that are financed by short-term obligations. This is because working capital is current assets minus current liabilities.
Using shareholders' equity takes into account only those assets financed with equity. It does not include assets that were financed by debt, or other liabilities.
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