Operating Cash Surplus Determinations

Abstract

The paper defines the concept of operating surplus. Then, it is compared to the gross operating surplus and the differences are identified. The two calculation methods are presented next: (1) operating revenue less operating charges and (2) the gross operating surplus less ΔWCN (Working capital needs) less immobilised production less stored production less other operating revenues). Then, a three year study is presented (2005-2007) and the results are interpreted. Then, there is a correlation between the operating cash flow surplus and the operating cash flows.