Definition, Meaning & Synonyms
operating income
noun
/ˈɒpəreɪtɪŋ ˈɪnkʌm/
Definition
Operating income is the profit realized from a business’s ongoing operations, excluding any income derived from non-operational sources.
Examples
- The company’s operating income increased significantly this quarter compared to last year.
- Investors often look at operating income to assess the efficiency of a company’s core operations.
- By cutting unnecessary expenses, the business was able to boost its operating income.
Meaning
It reflects the earnings generated from the company’s core business activities before interest and taxes are deducted.
Synonyms
- operating profit
- operating earnings
- core earnings
