What do you mean by Operating Surplus ?
Operating Surplus is the sum total of income from property, i.e., rent, royalty, and interest, and income from entrepreneurship, i.e., profit. Operating surplus arises in both government & private enterprises. However, it does not arise in general government sector, as they operate for the benefit of general public. Therefore, factor income is nil in general government sector. Operating surplus is often used as a measure of a company's operational efficiency and profitability. It indicates how effectively a company is managing its resources and generating profits from its core business operations. This metric is particularly useful for comparing the performance of companies within the same industry or sector, as it focuses solely on the income and expenses directly related to their main business activities.
How to Calculate Operating Surplus?
Operating Surplus calculator uses Operating Surplus = Value of Output-Intermediate Consumption-Compensation of Employees-Mixed Income-Consumption of Fixed Capital-Net Indirect Taxes to calculate the Operating Surplus, Operating Surplus represents the profit earned by a company before taking into account non-operating expenses such as interest on debt or taxes. Operating Surplus is denoted by OS symbol.
How to calculate Operating Surplus using this online calculator? To use this online calculator for Operating Surplus, enter Value of Output (VO), Intermediate Consumption (ICN), Compensation of Employees (CE), Mixed Income (MI), Consumption of Fixed Capital (CFC) & Net Indirect Taxes (NIT) and hit the calculate button. Here is how the Operating Surplus calculation can be explained with given input values -> 29415 = 80000-25080-18000-2000-2505-3000.