operating income
–noun | revenue from business operations after operating expenses are deducted from gross income. |
Financial Dictionary
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. Compare operating loss. Also called earnings before interest and taxes, operating profit. See also operating revenue.
Wall Street Words: An A to Z Guide to Investment Terms by David L. Scott.
Copyright © 2003. Published by Houghton Mifflin.
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