one of the most important measures of a company's performance and efficiency is it's operating income. operating income is the total profit that remains after deducting operating expenses including the labor cost, goods sold, depreciation, utilities and office supplies. operating income does not include outside investments, taxes or interest expenses. non-recurring items like money spent on a ? settlement are often excluded from operating income as well. the higher the operating income, the more profitable a business is likely to be. if a company's operating income is low or declining, less money will be available to reduce debt, expand operations and pay executives, employees and shareholders. for example, bruno's hamburger company sells $2,000,000 worth of hamburgers for the year. the company's cost of goods sold is $1,000,000. $500,000 goes to labor and another $100,000 pays for office supplies and general administrative expenses. since interest, taxes and non-recurring items are not included in the operating income, bruno's hamburger company would have an operating income of $400,000. most industries differ in labor and material cost. so, it is best to compare the operating income of a company to firms within the same industry.
- operating income・・・営業利益
- operating expense・・・営業費用