Nonoperating Income

nonoperating income

Income derived from a source other than a firm's regular activities. For example, a firm may record as nonoperating income the profit gained from the sale of an asset other than inventory.

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Nonoperating Income

Income that a company derives from any source other than its operations. For example, if a company sells one of its factories or receives income from interest payments, these constitute nonoperating income. Most (though not all) nonoperating income is non-repetitive, and, as such, is excluded from many measures of profit. See also: Operating income.