| || InvestHub.com's |
Finance Dictionary and Glossary of Investment Terms
The profit realized from a business' own operations.
A measure of a company's earning power from ongoing operations, equal to earnings before deduction of interest payments and income taxes. also called operating profit or EBIT (earnings before interest and taxes).
A firm''s earnings from normal operations, minus the everyday costs of doing business. Thus, operating income doesn''t take account of proceeds from an asset sale; these nonrecurring items are excluded. On the other hand, costs such as interest expenses and taxes are also ignored. Operating income gives investors an idea of how much money a company makes from its business operations.