Operating Income = Revenue – COGS or cost of revenue – Operating Expenses
or
Operating Income = Gross Income – Operating Expenses
Also known as Income from operations, income before interest and taxes, or EBIT (earnings before interest and taxes):
Operating income is the amount of profit from a business’s operations, after deducting operating expenses such as wages, depreciation, and cost of goods sold (COGS).
- Except from revenue from non-operating activities