operating income

(redirected from Operational Incomes)

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 ?
Alaris Antennas has significantly increased revenue and profits since its set up in 2005 with operational incomes prior interest and tax increasing with a collected yearly income price of over 25% in the past decade.
3 Net interest income (3,159) 6,544 -- Other operational incomes 637 1,092 71.
The profit of Bapindo in the first half of 1998 came from operational incomes mainly income from foreign exchange trade.
In addition, it recorded a surplus in its other operational incomes and the surplus tended to grow that its net profit in 1997 surged by 40% from the year before.
Meanwhile, its other operational incomes amounted only to Rp 1.
The increase in the net profit was attributable to a surge in operational income especially income in foreign exchange that was valued at Rp867 billion.

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