operating income

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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.

References in periodicals archive ?
EBITDA reached SR 632 million, jumped 70%, and operational income recorded SR235 million.
IDBI's total income during the fourth quarter of 2016- 17 was Rs 8,048 crore, down from Rs 8,275 crore in the year- ago quarter leading to reduced operational income.
The company recorded operational income of SAR 273 million($73 million) in Q1, 2017, compared to operational loss of SAR 32 million($8.
The company recorded operational income of SAR 273 million in Q1, 2017, compared to operational loss of SAR 32 million in the same quarter of 2016.
The bank posted an operational income of AED 564 million, while the net operational profit reached AED 428 million.
Company X would be required to remit to New Jersey a withholding tax on behalf of A for A's 20% share of Company X's income, including Company Y's 2016 operational income and the income from the sale of Company Y's assets, apportioned to New Jersey (N.
We see acceleration in the process of tendering, award and execution of the large infrastructure projects, which has reflected positively on NBK's operational income and loan growth.
The operational income of the listed cement companies stood at 49 percent of their sales in the second quarter and, once again, QCC realized the highest rate of operational income at 61 percent of sales whereas Jouf Cement Co.
This will adversely affect the corporation due to the significant reduction in its operational income during the forthcoming period.
6 percent in net profit whereas the net profit achieved by the end of the year was QR1,313 million compared to QR1,305 million in 2012 in addition to a growth rate equivalent to 5 percent in total operational income.
Operational activities are the main activities producing the operational income of the business unit.
YPF estimates operational income suffered a hit of roughly $150 million from the fire during the quarter.

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