operating income


Also found in: Acronyms.

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 ?
During the quarter, our Flooring North America segment's sales were up 8% over last year with adjusted operating income increasing 41%.
In addition to the financial results reported in accordance with generally accepted accounting principles as consistently applied in the United States ("GAAP"), the Company calculated non-GAAP core operating income for the three months ended March 31, 2015 and 2014.
1%, to JPY 120,394 million, and operating income jumped 70.
At the consumer end, Disney products increased 1 percent to $580 million, while operating income decreased 5 percent to $86 million.
Step one is to select the "tested party," generally the party to the controlled transaction whose operating income can be verified using the most reliable data with the fewest and most accurately quantifiable adjustments.
3% Selling, distribution, and administrative expenses 201,177 130,413 54% Amortization 18,377 1,471 1149% Merger and integration costs 16,476 3,400 385% Other restructuring costs - 519 (100%) Other operating expense - net 1,438 148 872% Operating Income 168,561 71,828 135% Operating margin 16.
19 If the operating income of the tested party falls outside the CPI, however, the IRS adjustment is to take into account how far outside the interval the tested party's operating income falls (unless either no consideration was paid for the transferred intangibles or the consideration paid was substantially disproportionate to the value of the intangibles, in which case the adjustment will be base on the "most appropriate point" in the CPI).
Jim Cantalupo, Vice Chairman McDonald's Corporation, Chairman and Chief Executive Officer - McDonald's International said, "Consolidated operating income for the quarter increased 11 percent in constant currencies.
Operating income was adversely affected by competitive pricing, increased raw-material costs and the Brazilian economic plan.
Terra also reported that it expects 2006 fourth quarter operating income to be higher than third quarter operating income.
Operating income for the third quarter of 1994 was $22.
STOCKHOLM, Sweden -- * Operating income increased by 59.