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Operating Surplus Formula

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Operating Surplus represents the profit earned by a company before taking into account non-operating expenses such as interest on debt or taxes. Check FAQs
OS=VO-ICN-CE-MI-CFC-NIT
OS - Operating Surplus?VO - Value of Output?ICN - Intermediate Consumption?CE - Compensation of Employees?MI - Mixed Income?CFC - Consumption of Fixed Capital?NIT - Net Indirect Taxes?

Operating Surplus Example

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With units
Only example

Here is how the Operating Surplus equation looks like with Values.

Here is how the Operating Surplus equation looks like with Units.

Here is how the Operating Surplus equation looks like.

29415Edit=80000Edit-25080Edit-18000Edit-2000Edit-2505Edit-3000Edit
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HomeIcon Home » Category Financial » Category Economy » Category Macroeconomics » fx Operating Surplus

Operating Surplus Solution

Follow our step by step solution on how to calculate Operating Surplus?

FIRST Step Consider the formula
OS=VO-ICN-CE-MI-CFC-NIT
Next Step Substitute values of Variables
∴ OS=80000-25080-18000-2000-2505-3000
Next Step Prepare to Evaluate
∴ OS=80000-25080-18000-2000-2505-3000
LAST Step Evaluate
∴OS=29415

Operating Surplus Formula Elements

Variables
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.
Symbol: OS
Measurement: NAUnit: Unitless
Note: Value should be greater than 0.
Formulas to find Operating SurplusOpen Variable
Value of Output
Value of Output refers to the total monetary worth of goods or services produced by a firm, industry, or economy within a specific period of time.
Symbol: VO
Measurement: NAUnit: Unitless
Note: Value should be greater than 0.
Formulas to find Value of OutputOpen Variable
Intermediate Consumption
Intermediate Consumption refers to the value of goods and services that are consumed as inputs in the production process but are not retained in the final product.
Symbol: ICN
Measurement: NAUnit: Unitless
Note: Value should be greater than 0.
Formulas to find Intermediate ConsumptionOpen Variable
Compensation of Employees
Compensation of Employees refers to the amount paid to employees directly or indirectly by the employer in exchange for their services.
Symbol: CE
Measurement: NAUnit: Unitless
Note: Value should be greater than 0.
Formulas to find Compensation of EmployeesOpen Variable
Mixed Income
Mixed Income is the income generated by unincorporated enterprises, such as small shopkeepers, retail traders etc and own-account workers such as farmers etc.
Symbol: MI
Measurement: NAUnit: Unitless
Note: Value should be greater than 0.
Formulas to find Mixed IncomeOpen Variable
Consumption of Fixed Capital
Consumption of Fixed Capital represents the decline in the value of fixed assets due to wear and tear, obsolescence, or aging over time.
Symbol: CFC
Measurement: NAUnit: Unitless
Note: Value should be greater than 0.
Formulas to find Consumption of Fixed CapitalOpen Variable
Net Indirect Taxes
Net Indirect Taxes refers to the difference between indirect taxes collected by the government on the production and sale of goods and services and subsidies provided by the government to producers.
Symbol: NIT
Measurement: NAUnit: Unitless
Note: Value should be greater than 0.
Formulas to find Net Indirect TaxesOpen Variable

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How to Evaluate Operating Surplus?

Operating Surplus evaluator uses Operating Surplus = Value of Output-Intermediate Consumption-Compensation of Employees-Mixed Income-Consumption of Fixed Capital-Net Indirect Taxes to evaluate 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 evaluate Operating Surplus using this online evaluator? To use this online evaluator 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.

FAQs on Operating Surplus

What is the formula to find Operating Surplus?
The formula of Operating Surplus is expressed as Operating Surplus = Value of Output-Intermediate Consumption-Compensation of Employees-Mixed Income-Consumption of Fixed Capital-Net Indirect Taxes. Here is an example- 29415 = 80000-25080-18000-2000-2505-3000.
How to calculate Operating Surplus?
With Value of Output (VO), Intermediate Consumption (ICN), Compensation of Employees (CE), Mixed Income (MI), Consumption of Fixed Capital (CFC) & Net Indirect Taxes (NIT) we can find Operating Surplus using the formula - Operating Surplus = Value of Output-Intermediate Consumption-Compensation of Employees-Mixed Income-Consumption of Fixed Capital-Net Indirect Taxes.
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