Gross operating surplus: a key financial indicator to be calculated


Gross Operating Surplus, more commonly known as EBITDA, is a particularly important financial indicator for a company. Here are some explanations that will help you understand what it really is, what its role is and how it is calculated.
What is EBE and what is its role?
Gross operating surplus is an extremely important financial indicator in the context of the accounting missions of a company since it allows knowing the resource that the latter derives from its cycle of explanation .This indicator makes it possible to maintain the production tool and to develop it, but also to remunerate the committed capital. It should be noted that when Gross Operating Surplus is negative, there is a gross operating deficit. It is therefore a question of expressing the capacity of an enterprise to generate cash resources, and thus to make conclusions on the performance of the latter.
What is its method of calculation?
There are different ways to calculate an EBITDA. Generally, it is calculated from the income statement. But it is also possible to calculate it on the basis of Turnover, net profit or Value added. It is important to calculate the Gross Operating Surplus at the time of the creation of a business or a takeover. It can also be interesting to calculate it at the time of the annual review, in order to know the future of the activity over a few months.

The Gross Operating Surplus is therefore a precise indicator allowing knowing precisely the profitability of a company generated by its real activity, independently of its policy of investment or financing.

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