operating income
Definition
Income resulting from a firm's primary business operations, excluding extraordinary income and expenses. Also called earnings before interest and taxes (EBIT), it gives a more accurate picture of a firm's profitability than gross income. Also called operating margin. Formula: Sales revenue – (Cost of sales + Operating expenses).
operating income is in the Accounting & Auditing and Banking, Commerce & Finance subjects.
operating income appears in the definitions of the following terms: return on assets (ROA), trading profit, gross income, earnings before interest and taxes (EBIT), non-operating income, operating leverage, operating profit, pre-tax income and earning power
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