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 ?
0 billion (+3%, +4% cc), driven by growth in core operating income and higher core income from associated companies.
This represents a decrease in operating income of 14% as compared to Q2 '12, and an increase of 94% as compared to six months 2012.
In addition, with the calming of raw material prices, which had been rising steeply, Ajinomoto projects that operating income of the overseas food products business will exceed the previous forecast.
This improvement reflects both the growth in income from financing and investment operations and the success of the bank in controlling the operating costs as reflected by the drop in the operating expenses to operating income ratio from 66pc to 55pc, said bank chairman and president and chief executive of Albaraka banking Group Adnan Ahmed Yousif.
For the fourth quarter, Tufts had net income of $18 million, including operating income of $1.
At the consumer end, Disney products increased 1 percent to $580 million, while operating income decreased 5 percent to $86 million.
Three of the four budding types saw increases in net operating income (i.
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.
Adjusted operating income in the first quarter of 2011 was $37.
FedEx Express, the airline unit of the global delivery giant, reported operating income of $467 million for its fiscal first quarter ended Aug.
The Burbank-based company on Wednesday reported a 5 percent revenue gain and an 8 percent jump in operating income for the first quarter of fiscal 2000.
This analysis effectively attributes to taxpayers engaged in related-party transactions an amount of operating income somewhere within a range -- referred to as the "comparable profit interval" (CPI) -- that the taxpayers would have earned had their performance been equivalent to comparable businesses operating at arm's length.