GROSS SURPLUS RATIO Definition

Bookmark and Share

GROSS SURPLUS RATIO measures the margin on each dollar of operating revenue for the entity in question. The operating results before interest and depreciation, or gross surplus, are calculated as a percentage of total operating revenue. The gross surplus ratio shows the gross surplus as a percentage of the entitys turnover. If the percentage is high this could be interpreted as a sign that the entity is operating efficiently.

Learn new Accounting Terms

ACID-TEST RATIO is an analysis method used to measure the liquidity of a business by dividing total liquid assets by current liabilities.

COLLUSION is a secret agreement between two or more parties to commit fraud or deceit.

Suggest a Term

Enter Search Term

Enter a term, then click the entry you would like to view.