What is Operating Income/Operating Profit?

When analyzing staffing firms, Operating Income is regarded as a good measure of ongoing business performance as it calculates profit before items such as taxes and other indirect costs are included. Operating Income is frequently referred to by the acronym EBIT (Earnings before Interest and Tax) or, if amortization and/or depreciation need to be factored into the calculation, EBITA or EBITDA.

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OTHER TERMS BEGINNING WITH "O"

  • Operating Agreement

    An operating agreement is a document describing how a limited liability company (LLC) will carry out business obligations between its owners. Many states in the United States require an LLC to have an operating agreement. LLCs operating without an operating…

  • Operating Asset

    Operating assets are the tangible assets and intangible assets that a company uses in its day-to-day operations to generate revenue. These assets are essential for conducting the core business activities of the company and are not held for investment purposes.…

  • Operating Expense Ratio (OER)

    The operating expense ratio (OER) is a metric that assesses the expenses associated with running a property in relation to the income generated by the property. You can calculate the operating expense ratio using the following formula: Property Operating Expenses…

  • Operating Margin

    A measure of profitability that tells the proportion of revenue that will eventually become profit for a company. The formula for calculating operating margin is Operating Income divided by Revenue. As such, Operating Margin is a measurement of what proportion…

  • Owner/Operator

    A truck driver who owns and operates their semi-trailer truck.