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 ?
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 agreement includes innovative terms, whereby the employees are entitled to participate in the Company's operational income over a certain threshold and enjoy additional payments, under certain conditions.
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.
YPF estimates operational income suffered a hit of roughly $150 million from the fire during the quarter.
Readers should understand that section 501(c) of the Internal Revenue Code has over 20 sections, the most common one being 501(c)(3), that for religions, charitable and educational institutions that not only escape taxation on their operational income, but which also afford donors a deduction for contributions.
The bank's operational income for the third quarter decreased by 0.
Fourth-quarter operational income reached SR 412 million, down 12 per cent from a year earlier.
The bank also announced a recorded net profit of QAR907 million and operational income of QAR1.
What is satisfying is that the bank is now depending more on income from financing and other core business, which constitute 78 per cent of total operational income and that the bank income is free of any revaluations or unearned income which confirms the conservative and rightful path followed by it,' he said.

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