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What is operating income and Operating profit?

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Question added by Kallol Chandra Das , Junior Officer , The Premier Bank Limited
Date Posted: 2014/10/18
VENKITARAMAN KRISHNA MOORTHY VRINDAVAN
by VENKITARAMAN KRISHNA MOORTHY VRINDAVAN , Project Execution Manager & Accounts Manager , ALI INTERNATIONAL TRADING EST.

The Operating  income is ALL the money that comes in;  while the Operating profits are ALL the money minus the operating expenses.

Ahmed kandil
by Ahmed kandil , Cost Controller , Battour Holding Cpompany

operating income is total revenue earned from main activities of company 

operating profit is total operating revenue minus total operating expenses 

Laji Abdul Latheef
by Laji Abdul Latheef , Project & Cost Coordinator , Cyber Space IT Solutions

Operating income represents the company's actual profit be before tax.

Operating Income = Revenue - (Cost of Goods Sold + Other operating expenses)

 

Operating profit is the company's profit after deducting tax and interest on loan (in case of loan taken from financial institutions) from the operating income.

Operating profit = Operating income - (tax + interest on loan taken)

FITAH MOHAMED
by FITAH MOHAMED , Financial Manager , FUEL AND ENERGY CO for transportion petroleum materials

 Operating income:

The amount of profit realized from a business's operations after taking out operating expenses - such as cost of goods sold (COGS) or wages - and depreciation. Operating income takes the gross income (revenue minus COGS) and subtracts other operating expenses and then removes depreciation. These operating expenses are costs which are incurred from operating activities and include things such as office supplies and heat and power. 

Operating Income is typically a synonym for earnings before interest and taxes (EBIT) and is also commonly referred to as "operating profit" or "recurring profit."

 

 Operating profit :

The profit earned from a firm's normal core business operations.

 This value does not include any profit earned from the firm's investments (such as earnings from firms in which the company has partial interest) and the effects of interest and taxes.

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