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What is Operating Income?

Operating income is essentially another term for EBIT, or earnings before interest and taxes.

It is a company’s profits (revenue - COGS) minus operating expenses and depreciation.

Operating income is different from net income in that it does not account for expenses such as taxes, interest from debt payments, or outside business activities. It offers a pure look at how a company effectively generates cash from internal operations.

Keywords: debt, profits, income, corporate finance, operating income,