Non-Operating Income

AAA

DEFINITION of 'Non-Operating Income'

The portion of an organization's income that is derived from activities not related to its core operations. Non-operating income would include such items as dividend income, profits (and losses) from investments, gains (or losses) incurred due to foreign exchange, asset write-downs and other non-operating revenues and expenses.

INVESTOPEDIA EXPLAINS 'Non-Operating Income'

When analyzing a company's performance over a recent quarter or year, it is important to differentiate between operating and non-operating profit and loss. For example, if a company's bottom-line earnings per share is reported to be markedly higher this year than last year, but this is due to a one-time gain on investment securities, this should be excluded from the firm's operating income, in order to gain a better measure of how much the company's operations actually grew during the year.

RELATED TERMS
  1. Net Operating Income - NOI

    A company's operating income after operating expenses are deducted, ...
  2. Operating Loss - OL

    The net loss recorded as a result of a company's unprofitable ...
  3. Non-Core Item

    Items that are considered outside of normal activities or operations. ...
  4. Discontinued Operations

    A segment of a company's business that has been sold, disposed ...
  5. Pretax Operating Income - PTOI

    An accounting term that refers to the difference between a company's ...
  6. Income From Operations - IFO

    The profit realized from a business' own operations. Income from ...
Related Articles
  1. Zooming In On Net Operating Income
    Investing

    Zooming In On Net Operating Income

  2. The 5 Types Of Earnings Per Share
    Markets

    The 5 Types Of Earnings Per Share

  3. Understanding The Income Statement
    Forex Education

    Understanding The Income Statement

  4. Finding Profit In Troubled Stocks
    Investing

    Finding Profit In Troubled Stocks

Hot Definitions
  1. Halloween Strategy

    An investment technique in which an investor sells stocks before May 1 and refrains from reinvesting in the stock market ...
  2. Halloween Massacre

    Canada's decision to tax all income trusts domiciled in Canada. In October 2006, Canada's minister of finance, Jim Flaherty, ...
  3. Zombies

    Companies that continue to operate even though they are insolvent or near bankruptcy. Zombies often become casualties to ...
  4. Witching Hour

    The last hour of stock trading between 3pm (when the bond market closes) and 4pm EST. Witching hour is typically controlled ...
  5. October Effect

    The theory that stocks tend to decline during the month of October. The October effect is considered mainly to be a psychological ...
  6. Repurchase Agreement - Repo

    A form of short-term borrowing for dealers in government securities.
Trading Center