sanjeev kumar (112 Points)
19 January 2016
JOEY TRIBIONI
(Article)
(200 Points)
Replied 19 January 2016
Operating income and operating profit are synonyms for the income produced by operations in a business. This income is the net of revenues minus operating expenses, cost of goods sold and depreciation reported on a company's income statement. Operating income/profit is an important number for investors to review on the income statement, as it shows how efficiently the company generates a profit.
Most people use operating income and operating profit interchangeably, when referring to the gross income of a company less operating expenses. Both operating income and profit are calculated before taking into consideration taxes and interest, making them the same as the accounting categoryearnings before interest and taxes (EBIT).
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