Operating income, also called income from operations, is an accounting metric that tells how much profit a business has made from regular operations.
It is recorded after deducting depreciation, amortization, and the cost of goods sold.
Operating income is also known as operating profit, and is sometimes referred to as EBIT, or Earnings Before Interest and Taxes.
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0:00 Operating Income Definition
0:16 Operating Income Formula
0:46 Importance of Operating Income
1:15 Examples of Non-Operating Income or Expenses
2:38 Percentage of Revenue
2:49 Operating Income Question & Application
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