Operating Income

Posted by Mr. P | Terms | Saturday 24 January 2009 7:30 PM

Operating income is earnings before interest and taxes.  This is simply what your investment or business brings in, the revenue, minus the costs of the operation, the operating expenses.  This, however, is not income, because you will not realize the amount that is operating income.

The equation for finding operating income is:

Operating Income = Revenue - Operating Expenses

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