surplus

noun
sur·​plus | \ ˈsər-(ˌ)pləs How to pronounce surplus (audio) \

Definition of surplus

 (Entry 1 of 2)

1a : the amount that remains when use or need is satisfied
b : an excess of receipts over disbursements
2 : the excess of a corporation's net worth over the par or stated value of its stock

surplus

adjective

Definition of surplus (Entry 2 of 2)

: more than the amount that is needed : constituting a surplus surplus food/clothing/equipment When the sea captains returned, they would sell their surplus wares on the wharves.— Carol Vogel Long before the comparable worth battles of today, the economic value of women's work was evident to farm women who set prices for the surplus butter, candles, soap, honey, preserves, chickens, and eggs they raised or manufactured.— Mary Kay Blakely

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Examples of surplus in a Sentence

Noun

If there is any surplus, it will be divided equally. There is a surplus of workers and not enough jobs.

Recent Examples on the Web: Noun

Nearly half of that surplus comes from trade with the United States. Keith Bradsher, New York Times, "China Needs New Places to Sell Its Mountain of Stuff," 26 July 2019 The goal of a primary budget surplus has been pushed back five years to fiscal 2025. Yoshiaki Nohara, Bloomberg.com, "In One of the World’s Richest Countries, Most Single Mothers Live in Poverty," 24 June 2018 Driving the conversation, on one hand, is Germany's hefty budget surplus. Julia Horowitz, CNN, "Europe needs Germany to spend big. Don't hold your breath," 11 Sep. 2019 Germany long had amicable relations with Beijing because its exporters ran a surplus supplying Chinese factories with equipment and components. Time, "Germany's Merkel Says Hong Kong's Rights Should Be Protected," 6 Sep. 2019 Everything else on display here was developed for use in some way, either as a prototype, as a test article or was surplus. Matt Wake | Mwake@al.com, al.com, "How to get the most out of your Rocket Center visit," 22 July 2019 The rage in the Capitol right now is the surplus that state government rolled up in the almost-ended fiscal year. USA TODAY, "Mural for missing women, ‘Jedi’ cremations, MRI party: News from around our 50 states," 18 June 2019 Neither of the lawmakers could find the money for it, even though there was a large surplus, because there were many competing demands, such as K-12 education funding and public safety. Andrew Nicla, azcentral, "Gov. Ducey signs bill to reinstate Heritage Fund, but without any funding," 7 June 2019 Mason added that gardeners should feel free to bring any type of surplus perennial plant. cleveland.com, "Berea Library hosts plant exchange Sept. 28," 9 Sep. 2019

Recent Examples on the Web: Adjective

That’s still the case today, long after the bunkers were last used and 12 years after the U.S. Navy declared its 5,000 acres south of Highway 4 to be surplus property. John King, SFChronicle.com, "Concord weapons station has fraught history, but development concept has promise," 3 Sep. 2019 The Sporting CP academy graduate could possibly be surplus to requirements. SI.com, "8 Tottenham Hotspur Players Who Could Still Leave This Summer," 20 Aug. 2019 Congress has continued funding construction of the plant, which would be used to dispose of surplus weapons-grade plutonium, despite a series of reviews casting doubt on the financial logic involved. Scott Calvert, WSJ, "South Carolina Fights U.S. Plan to Abandon Nuclear Project Costing $1.2 Million a Day," 18 July 2018 The result, Elmer said, is the system has surplus power capacity without the Killingly plant. Stephen Singer, courant.com, "Environmentalists clash with Lamont as natural gas plant set for Killingly tests Connecticut’s promise to address climate change," 10 Sep. 2019 When the Cold War thawed in the 1980s, more surplus military lands were earmarked for refuges. Fox News, "Sites of major US weapons tests now see wildlife flourishing," 19 Aug. 2019 When the Cold War ended in the 1980s, more surplus military lands were earmarked for refuges. Washington Post, "Heavily polluted US weapons sites are now home to wildlife," 18 Aug. 2019 When the Cold War ended in the 1980s, more surplus military lands were earmarked for refuges. Dan Elliott, The Denver Post, "Heavily polluted U.S. weapons sites — including Rocky Flats and Rocky Mountain Arsenal — are now home to wildlife," 18 Aug. 2019 Fremont’s first homeless navigation center should be located in a parking lot behind city hall in downtown, or on a surplus city property next to a plant nursery in the city’s north end, the city council decided Tuesday. Joseph Geha, The Mercury News, "Fremont moving closer to final site for homeless navigation center," 10 July 2019

These example sentences are selected automatically from various online news sources to reflect current usage of the word 'surplus.' Views expressed in the examples do not represent the opinion of Merriam-Webster or its editors. Send us feedback.

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First Known Use of surplus

Noun

14th century, in the meaning defined at sense 1a

Adjective

1589, in the meaning defined above

History and Etymology for surplus

Noun

Middle English, from Anglo-French, from Medieval Latin superplus, from Latin super- + plus more — more at plus

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Statistics for surplus

Last Updated

19 Oct 2019

Look-up Popularity

Time Traveler for surplus

The first known use of surplus was in the 14th century

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More Definitions for surplus

earned surplus

noun

Financial Definition of earned surplus

What It Is

Earned surplus is the sum of a company's profits, after dividend payments, since the company's inception. It can also be called retained earnings, retained capital, or accumulated earnings.

How It Works

Let's look at an example to illustrate.

Assume Company XYZ has been in business for five years, and it has reported the following annual net income:

Year 1: $10,000

Year 2: $5,000

Year 3: -$5,000

Year 4: $1,000

Year 5: -$3,000

Assuming Company XYZ paid no dividends during this time, XYZ's earned surplus is the sum of its net profits since inception: $10,000 + $5,000 - $5,000 + $1,000 - $3,000 = $8,000.

In subsequent years, XYZ's earned surplus will change by the amount of each year's net income, less dividends.

The statement of earned surplus summarizes changes in earned surplus for a fiscal period, and total earned surplus appears in the shareholders' equity portion of the balance sheet. This means that every dollar of earned surplus is essentially another dollar of shareholders' equity.

A company's board of directors may "appropriate" some or all of the company's earned surplus when it wants to restrict dividend distributions to shareholders. Appropriations are usually done at the board's discretion, although bondholders may contractually require the board to do so. Appropriations appear as a special account in the earned surplus section. When an appropriation is no longer needed, it is transferred back to earned surplus. Because earned surplus is not cash, a company may fund appropriations by setting aside cash or marketable securities for the projects indicated in the appropriation.

Why It Matters

It is important to understand that earned surplus does not represent extra cash or cash left over after the payment of dividends. Rather, earned surplus demonstrates what a company did with its profits; they are the amount of profit the company has reinvested in the business since its inception. These reinvestments are either asset purchases or liability reductions.

Earned surplus somewhat reflects a company's dividend policy, because it reflects a company's decision to either reinvest profits or pay them out to shareholders. Ultimately, most analyses of earned surplus focuses on evaluating which action generated or would generate the highest return for the shareholders.

Most of these analyses involve comparing earned surplus per share to profit per share over a specific period, or they compare the amount of capital retained to the change in share price during that time. Both of these methods attempt to measure the return management generated on the profits it plowed back into the business. Look-through earnings, a method developed by Warren Buffett that accounts for taxes, is another method in this vein.

Capital-intensive industries and growing industries tend to retain more of their earnings than other industries because they require more asset investment just to operate. Also, because earned surplus represents the sum of profits less dividends since inception, older companies may report significantly higher earned surplus than identical younger ones.

This is why comparison of earned surplus is difficult but generally most meaningful among companies of the same age and within the same industry, and the definition of "high" or "low" earned surplus should be made within this context.

Source: Investing Answers

surplus

noun

English Language Learners Definition of surplus

 (Entry 1 of 2)

: an amount (such as an amount of money) that is more than the amount that is needed

surplus

adjective

English Language Learners Definition of surplus (Entry 2 of 2)

: more than the amount that is needed

surplus

noun
sur·​plus | \ ˈsər-pləs How to pronounce surplus (audio) \

Kids Definition of surplus

 (Entry 1 of 2)

: an amount left over : excess

surplus

adjective

Kids Definition of surplus (Entry 2 of 2)

: left over : extra surplus wheat

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surplus

noun
sur·​plus | \ ˈsər-ˌpləs How to pronounce surplus (audio) \

Legal Definition of surplus

1a : an amount that remains when a use or need is satisfied
b : an excess of receipts over disbursements
c : the value of assets after subtracting liabilities
2 : an excess of the net worth of a corporation over the par value of its capital stock — compare undivided profits
capital surplus
: all surplus other than earned surplus
earned surplus
: the surplus that remains after deducting losses, distributions to stockholders, and transfers to capital stock accounts
paid-in surplus
: surplus resulting from the sale of stock at amounts above par

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