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operating income vs operating profit

Both 'operating income' and 'operating profit' are correct terminologies used in financial reporting to describe the profit generated from a company's core business operations. They are interchangeable and can be used depending on personal preference or specific industry standards.

Last updated: March 30, 2024 • 566 views

operating income

This phrase is correct and commonly used in financial reporting to refer to the profit earned from a company's primary business activities.

It is used to indicate the earnings a company makes from its core operations before interest and taxes are deducted.
  • part of other operating income - excluding subsidies,
  • (v) other operating income.
  • Volvo Construction Equipment has been granted a high cash pool limit, however only for a single year and the company contributed 11 % to the group's operating income.
  • Volvo Aero accounts for 2 % share of the Group's net sales and operating income.
  • Roughly [65 - 95] % of operating income will come from the Netherlands.
  • Compared to ABN AMRO Group, Intertrust and PFS jointly represent [0 - 5] %, [0 - 5] % and [0 - 5] % in terms of its projected total operating income, costs and RWA respectively.
  • Likewise, the number of passengers passing through Charleroi airport and the operating income in 2011 exceeded the estimates in this same business plan.
  • According to Germany, this would ensure that account is taken of the contribution of each of the products concerned to the operating income.
  • Taxation of operating income accrued or distributed to other participants in investment vehicles not subject to the substitute tax
  • In 2008, the Group's operating income amounted to SEK 15851 million (approx EUR 1704 million) with an operating margin of 5,2 %.
  • The French authorities have specified that the Group's ordinary operating income, in the median scenario, will be positive from 2014, at EUR [1200-2000] million, i.e. [1-5] of turnover.
  • In the 'median' scenario, the PSA Group's ordinary operating income is positive from 2014, at EUR [1200-2000] billion, i.e. [1-5] of the Group's turnover.
  • Subject to the treatment of income classified as 'other operating income, financial income and extraordinary income' in company accounts [5], the items generally excluded are:
  • Operating income, not shown under other headings.
  • 4. Other operating income.
  • Title: Other operating income
  • Volvo Aero is a developer and producer of components for commercial and military aircraft engines, with operating income of SEK 359 million (approx. EUR 39 million and operating margin of 4,8 % in 2008.
  • means the ratio of operating expenses (labour and SG&A costs) to operating income (the sum of net interest income, commission income, revenues from capital instruments, revenues from financial operations, and any other income from operations)
  • ABN AMRO Group is well diversified with EUR 4,2 billion operating income in 'Retail and Private banking' and EUR 2,8 billion operating income in 'Commercial and Merchant banking'.
  • Note: other operating income is a company accounting heading.

Alternatives:

  • operating profit
  • earnings before interest and taxes (EBIT)
  • gross profit
  • net income
  • profit from operations

operating profit

This phrase is also correct and commonly used in financial reporting to describe the profit generated from a company's main business activities.

It represents the profit a company makes from its core operations before interest and taxes are taken into account.
  • The operating profit shall be deducted from the eligible costs ex ante or through a claw-back mechanism.
  • [...] % on the basis of pre-tax operating profit (EBT)
  • In 2008 the company featured a negative operating profit and negative cash flow.
  • The operating profit is also relatively low and limited for most of the companies.
  • The Commission analysed the company's forecasts in terms of operating profit.
  • Assuming that the operating profit would be close to zero thereafter, the present value of the operations in succeeding years was set to zero.
  • Tieliikelaitos' 2006 operating profit amounted to EUR 10,6 million. Its average number of employees stood at 2469 in 2006.
  • The operating profit indicator improved again in 2006 (2,2 %) and continues to improve.
  • The operating profit in relation to equity capital will increase to 12,6 % in 2008.
  • The aid amount shall not exceed the difference between the eligible costs and the operating profit of the investment.
  • - the company is eligible for restructuring aid as, in 2004, the beneficiary managed to generate an operating profit of PLN 5,4 million (EUR 1,388 million).
  • Financial services contributed 82 % to the operating profit of the PI group, and insurances services 18,7 %.
  • Willem II was able to achieve an operating profit of EUR 0,3 million in 2010/2011 and again in 2011/2012, thus improving its own equity position to minus EUR 1,4 million per 30 June 2012.
  • 'operating profit' means the difference between the discounted revenues and the discounted operating costs over the relevant lifetime of the investment, where this difference is positive.
  • During the financial year 2006 PP achieved a turnover of PLN 6289 million [14], an operating profit of PLN 146 million and a net profit of PLN 124 million.
  • In addition, the operating profit generated by the subsidiary DSB S-tog a/s is included in the consolidated results of DSB SV.
  • Through different projections the expert demonstrated that without the Wealth Management Business the bank's 'operating profit would tumble, [...]' and that its [...] would have deteriorated.
  • The net profit indicator calculated for each company was a mark-up on total costs, which is defined as operating profit divided by total operating costs.
  • The tax advisor uses the term mark-up although the calculation of the mark-up is based on the operating profit of the comparable companies divided by a cost basis and not on gross profit.
  • The impact of the loss of customers on operating profit (EBIT) would have been greatest, therefore, in the first year and would have declined in the following two years until the return to the situation prior to the application for a court-ordered liquidation.

Alternatives:

  • operating income
  • earnings before interest and taxes (EBIT)
  • gross profit
  • net income
  • profit from operations

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