The gross operating surplus corresponds to the result determining the profitability of the company’s current activity.
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Gross operating surplus is an Interim Management Balance calculated as the difference between operating income and operating expenses.
Characteristics of gross operating surplus
Gross operating surplus is an Interim Management Balance calculated as the difference between operating income and operating expenses. EBITDA is the result of the current activity of the company and differs from the operating result because it does not take into account the investment policy of the company or its financial management.
EBITDA is therefore a key indicator which makes it possible to determine the profitability of the company’s current activity and allows a better comparison between it and its competitors.
Why calculate EBITDA?
EBE provides information on the profitability of the company and its cost control . If your EBITDA shows that your operating expenses are covered by operating income, it shows that your cost containment is effective.
In addition, EBITDA measures the economic performance of the company. The advantage of EBITDA is that it shows the capacity of the company to produce resources from its exploitation only, excluding financing and investments.
EBITDA is calculated over a specific period, generally over an accounting year , during the closing of accounts for example. You can calculate EBITDA from:
- Your turnover excluding VAT
EBE = Turnover – Purchase of goods and raw materials – Third party services (lawyers for example) – Taxes and duties – Staff costs.
- Your added value
EBE = Added value + Operating subsidies – Taxes and levies – Staff costs