How do you calculate operating income?

Operating Income = Gross Profit – Operating Expenses – Depreciation – Amortization. Operating Income is the sum of net earnings, interest expense, and taxes. This formula is used when net earnings of the company are available along with interest expense and the tax levied on the company and paid by the company.

What does 'operating income' mean?

Operating income is the profit of a business after all operating expenses are deducted from sales receipts or revenue. It represents how much a company is making from its core operations, not including other income sources not directly related to its main business activities.

What is the difference between operating income and net revenue?

The key difference between operating income and net income is that operating income refers to the income earned by a business organization during the period under consideration from its principal revenue-generating activities and does not consider non-operating income and non-operating expenses, whereas, net Income refers to earnings of the business which is earned during the period after considering all the expenses incurred by the company during that period.