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 ?
Segment operating income was $98.6 million (20.6% of revenue) compared to $78.3 million (18.2% of revenue) in the first quarter last year.
Operating income, excluding the impact of valuation gains/losses from interest rate swaps, decreased by 25.6 billion yen to 116.5 billion yen.
Second quarter 2019 segment operating income increased $199 million, or 26 percent, due to higher operating income at all four sectors, including a full quarter of operating income from Innovation Systems.
Operating income, excluding the impact of valuation gains/losses from interest rate swaps, increased by 37.0 billion yen (*$336.3 million) to 115.4 billion yen (*$ 1.0 billion).
Adjusted operating income was $203.4 million for the full year of 2018 compared to $215.9 million in the comparable period last year.
In Asia, vehicle sales totaled 1,274,858 units, an increase of 126,681 units, while operating income, excluding the impact of valuation gains/losses from interest rate swaps, increased by 59.9 billion yen to 395.0 billion yen.
The decrease in operating income is due to product launch costs and higher tariffs.
Operating income for the 2017 first half increased by $66 million, or 13%, compared to the 2016 first half and includes a pre-tax gain of $42 million related to the sale of the company's property in San Carlos, California, in connection with the consolidation of the EDD/ETI TWT businesses.
The Company reported total operating income of $5.5 million for the second quarter of fiscal 2018, compared to $3.9 million for the same quarter in 2017.
Consolidated operating income reached P53.4 billion, 10 percent higher than last year.
Net income of USD 746 million, diluted earnings per share of USD 1.23, operating income of USD 1.25 billion, and operating margin1 of 21.8 percent.
Bank AlJazira has announced a 24 per cent increase in net income as compared to Q1 2016, mainly due to increase in operating income by 14 per cent.

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