Investing Dictionary
Company Health

What is Operating Income?

Profit from the core business before taxes and interest

Full Explanation

Operating income shows how profitable the main business is, ignoring one-time events, taxes, and debt costs. It's a cleaner view of business performance than net income.

Pro Tip

Growing operating income = the core business is getting stronger.

Related Company Health Terms

P/E Ratio

How expensive a stock is compared to its profits

Price-to-Book (P/B)

Stock price vs. the company's net assets

Price-to-Sales (P/S)

How much investors pay for each dollar of a company's revenue

Profit Margin

What percentage of revenue becomes actual profit

View all Company Health terms →

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