operating income

Core business earnings

Operating income is the profit a company earns from its core business activities, calculated by subtracting operating expenses from gross profit.

It excludes income from investments, interest payments, and taxes—showing how much the business makes from actually doing what it does: The retailer's operating income rose despite flat sales, thanks to cost cuts.

Also called operating profit.

Related

quarterly results · cost of goods · depreciation · profit margin · amortization · financial reporting · production costs · expenses · fixed costs · labor costs · balance sheet · marketing expenses · variable costs · performance metrics · cash flow · accounting standards · working capital · service delivery

Opposites
profit vs. loss from operations

operating incomeoperating loss

Negative operational income

operating vs. non-operating financial metrics

operating incomeinvestment income

Earnings from deployed capital

interest income · other income · dividend income · net profit · net income

income vs. expenses

operating incomeoperating expenses

Routine business costs

operating costs · cost of goods sold · OPEX · overhead costs · administrative expenses

Family

operating, income, operate, operates, operated, operation, operations, operational, operative

Familiarity
Top 500,000
Profile
Used worldwide · Timeless · Abstract · Rated G