Definition
Operating income, also known as operating profit, is the profit a company generates from its core business activities, excluding any non-operational income or expenses such as taxes and interest.
Related Services
Financial reporting, profitability analysis, and operational efficiency consulting help businesses calculate and improve operating income.
Problem and Application
Operating income reflects the efficiency of a company�s core operations, and a decline in this figure can signal issues with cost control, pricing strategies, or operational inefficiencies.
Conclusion
Operating income is a key measure of business performance, highlighting how well a company�s core operations are performing without external financial influences.
