“Unlocking Profit Secrets: Discover How Operating Income Could Transform Your Business Strategy!”
Related: What Is Year Over Year (YOY)?
How Is Operating Income Calculated?
The process of calculating operating income is simple: subtract operating expenses from operating revenues. The revenues earned by a company’s principal business activities, such as the selling of goods or services, are referred to as operating revenues. Operating expenses are the costs incurred to create operating revenues and might include labor costs, rent, utilities, and other expenses directly related to the company’s usual business operations. Simply subtract the total operating expenses from the total operating revenues to get operating income. This will provide you the operating income of the company for a given time period, such as a quarter or a year.
