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Operating Income Definition

operating income – n : finance/accounting term; also referred to as operating profit; profits from operations calculated by subtracting the cost of goods (or services) sold (COGS), as well as the costs to run the business (salaries, rent, etc.) known as operating expenses, from revenue. Operating income measures the health of the core business before taking into account the effects of financing charges, such as interest, and taxes.

Adapted from "The CompanyCrafters Entrepreneur's Dictionary"
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