Operating Incomes financial definition of Operating Incomes. Operating Incomes finance term by the Free Online Dictionary.

Operating Income

A company's income from the goods and services it provides, less its operating expenses and depreciation. The operating income does not include losses from interest payments or income tax. For example, a widget manufacturer earns $1,000,000 in gross revenue from the sale of widgets. The widgets cost $200,000 to make and his administrative and payroll expenses total $250,000. He also must subtract $50,000 in depreciation on his widget manufacturing equipment. His operating income is stated as: $1,000,000 - $200,000 - $250,000 - $50,000 = $500,000. Operating income is closely related to earnings before interest and taxes (EBIT), but EBIT includes nonoperating income, which is usually (but not always) significantly less than operating income. See also: Net income.

operating income

The excess of revenues over expenses derived from normal business operations. Operating income, representing income from ordinary business activities, excludes expenses, such as interest and taxes. Unusual nonrecurring items, such as gains from selling a subsidiary or losses from closing a plant, are not included in the calculation of operating income. Also called earnings before interest and taxes, operating profit. Compare operating loss. See also operating revenue.

operating income

See net operating income.

Operating Income

What Does Operating Income Mean?

The amount of profit realized from a business's own operations, excluding operating expenses (such as cost of goods sold) and depreciation from gross income. Also referred to as operating profit and recurring profit. It is calculated as shown here:

Investopedia explains Operating Income

Operating income does not include items such as investments in other firms, taxes, and interest expenses. In addition, nonrecurring items such as cash paid for a lawsuit settlement often are not included. Operating income is necessary to calculate operating margin, which describes a company's operating efficiency.

Related Terms:
• Cash Conversion Cycle
• Cost of Goods Sold—COGS
• Gross Income
• Net Operating Income—NOI
• Operating Expenses

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After Tax Operating Income band of investment Bank Line debt coverage ratio Financial Leverage Ganancia operativa general and administrative expenses net operating income Net Operating Profit Less Adjusted Taxes NOI Operating Expense Operating Profit OPEX	Operacion sin riesgo Operaciones anonimas Operaciones basadas en informacion Operaciones de mercado abierto Operaciones poscierre Operador Operador de inversores institucionales Operador de la punta contraria Operador de valores Operador especializado en bonos operating and easement agreement Operating Assets operating budget operating capital Operating Cash Flow Operating Cash Flow Ratio Operating Company Operating Cycle Operating Expense operating expense escalation operating expense ratio operating expenses Operating Exposure Operating in the Red operating income Operating Incomes operating lease operating leverage Operating Loss Operating Margin Operating Profit Operating Profit Margin Operating Rate Operating Ratio Operating Ratios Operating Revenue Operating Risk Operating Statement operating statements Operating Unit operation de sauvetage Operation financiere Operation Iraqi Freedom operation of law Operational Audit Operationally efficient market Operations Department Operations research Operator Operazione di copertura Operazioni a termine	Operating exposure Operating Facilities and Services Agreement Operating Facility Operating Facility Change Order operating field operating field operating field operating field Operating Force operating forces Operating Free Cash Flow Operating frequency Operating Fund Financing Program Operating Funds Flow Operating Ground Equipment Operating Ground Equipment/Real Property Installed Equipment operating handle Operating Heat Flux Operating Hour Operating Hours Operating in the red Operating in the red Operating income Operating income Operating Income Before Amortization Operating Income Before Depreciation Operating Income Before Depreciation & Amortization Operating Income Before Interest, Taxes, Depreciation and Amortization Operating Income Return on Investment Operating Incomes Operating Instruction Operating Instruction Manual operating instructions operating instructions Operating Internal Pressure Operating Issues Work Group Operating Juniper Networks Routers Operating lease Operating Leases Operating leasing Operating Level Operating Level Agreement Operating Level Days operating level of supply operating lever Operating leverage Operating Leverages Operating License Operating life Operating life operating light operating light operating light operating light Operating Limit Operating Limited Partnership operating line Operating Location operating loss

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