Unlock the Hidden Profit Secrets Every Business Owner Must Know About Operating Income
This article was last updated on January 31, 2023
Operating income is one of the most important figures in accounting. Also known as operating profit, the figure is a financial metric used to measure the profitability of a company’s core operations. It is calculated by subtracting operating expenses from operating revenues. Operating income is an important measure of a company’s financial performance, as it indicates the amount of money the company is able to generate from its normal business operations, before accounting for non-operating income and expenses, such as interest and taxes.
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