Operating profit

Operating profit is known as net operating surplus (profit), the return on capital employed by businesses. The difference with gross operating surplus is depreciation. These are depreciations of capital assets: produced assets that last a year or more in the production process, such as buildings and computers, but also, for example, software.

Net operating surplus is used to calculate the labour income share as it gives a better picture of the income from which to invest or save. This way, it takes the depreciation of capital assets and the replacement investments into account that are needed to maintain production capacity.