Nonoperating income (expense)
Reported total income or expense outside operating income.
Worked example · a round-number company
Nonoperating income (expense)$1.0B÷Revenue$5.0B=Share of revenue20.0%This period$1.0B÷A year before$800M− 1 =Change+25.0%How to read it
↕Neither higher nor lower is better. Explains how financing, investment returns and other nonoperating items affect pretax results.
Keep in mind
- Can include volatile noncash changes in warrants or other financial instruments.