Operating Income
The amount of profit realized from a business's own operations, but excluding operating expenses (such as cost of goods sold) and depreciation from gross income.
Also referred to as "operating profit" or "recurring profit".
Calculated as:
Investopedia Says:
Operating income would not include items such as investments in other firms, taxes or interest expenses. In addition, nonrecurring items such as cash paid for a lawsuit settlement are often not included.
Operating income is required to calculate operating margin, which describes a company's operating efficiency. Related Terms:
After Tax Operating Income - ATOI
Cost Of Goods Sold - COGS
Depreciation
Gross Income
Income From Operations - IFO
Net Operating Income
Non-Operating Cash Flows
Operating Expenses
Operating Income Before Depreciation And Amortization - OIBDA
Operating Margin |