Operating Income
Content
Definition
Operating Income is revenue from business operations after deducting operating expenses and before taxes and interest.
Usage and Context
Frequently asked questions
- What is operating income before taxes and interest? Operating income before taxes and interest is the profit a company makes from its core operations, excluding any costs related to taxes and interest payments.
- What is the operating revenue formula? The operating revenue formula is total revenue minus operating expenses. This calculation shows the profit generated from regular business activities.
- What is income after deducting for the operating expenses called? Income after deducting operating expenses is called operating income, indicating the profit earned from core business activities.
Benefits
Operating income helps assess the profitability of a company`s core operations, providing a clear picture of financial performance without the influence of taxes and interest.
Conclusion
Operating Income measures the profit from business operations after deducting operating expenses, offering insight into a company`s core profitability.
