Operating income
Profit or loss from operations before nonoperating items and tax.
Worked example · a round-number company
Operating income$750M÷Revenue$5.0B=Operating margin15.0%This period$1.0B÷A year before$800M− 1 =Change+25.0%How to read it
↑Higher is better. Helps assess whether the core business covers its costs.
Keep in mind
- Banks often do not report a comparable operating-income subtotal.