The profit generated from a company's core operations, excluding non-operating expenses or revenue.
Operating Income is a financial metric that represents the profitability of a business's core operations before interest and taxes. It is calculated by subtracting the operating expenses (such as costs of goods sold, salaries, and rent) from the gross revenue generated from the business's primary activities. Operating income indicates how well a business is generating profit from its day-to-day operations, excluding non-operational factors like interest income or expenses. This metric helps small business owners assess the efficiency and profitability of their core business activities, enabling them to make informed decisions regarding pricing strategies, cost management, and overall business performance.