What is Operating Income? definition and meaning

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operating income

Definition

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).

Use operating income in a sentence

“ If you want to budget out everything properly then you will need to know what your full operating income is. ”

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“ A company often makes decisions based off of their operating income instead of after tax earnings because tax amounts can change from year to year. ”

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“ The operating income of our company was adversely affected by stagnant revenues combined with greater selling and administrative expense during the recent fiscal year. ”

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