Definition: Profit share of non-financial corporations

Category: National accounts

The profit share of non-financial corporations is defined as gross operating surplus divided by gross value added. This profitability-type indicator shows the share of the value added created during the production process remunerating capital. It is the complement of the share of labour costs (plus net taxes on production) in value added.

Different profit shares across countries can be explained by a number of factors, such as the relative importance of labour versus capital intensive industries, labour productivity and the level of labour costs. http://ec.europa.eu/eurostat/product?code=KS-SF-09-028&mode=view