Operating Earnings

Operating Earnings

Profits after subtracting expenses such as marketing, cost of goods sold, administration and general operating costs from revenue.

Notes:

Tax and interest expenses are not subtracted - operating earnings are synonymous with EBIT (earnings before interest and taxes). Analysts typically use operating earnings to judge the quality of a company's core business and forward prospects since it shows the relationship between sales, volume and costs.

See also: Cost of Goods Sold - COGS, Earnings, EBITD, EBITDA, EBITDAX, Expenses, Income Tax, Net Income, Revenue, Taxes