Operating Revenue

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What is 'Operating Revenue'

Income derived from sources related to a company's everyday business operations. For example, in the case of a retail business, inventory sales generate operating revenue, whereas the sale of a warehouse does not. Instead, the latter sale is considered to be an unexpected, or "one-time", event.

Also referred to as "regular revenue".

BREAKING DOWN 'Operating Revenue'

By examining a company's operating, or "regular," revenue an investor can often gain meaningful insights into the health of a business, especially since fading companies often sell underperforming stores and/or assets, making the income statement look more attractive than it might otherwise be. Operating revenue is not the same as operating profit, which is the more commonly used metric in financial statement analysis.

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RELATED FAQS
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  3. Why does operating profit exclude interest revenues and expenses?

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  4. What can gross sales tell you about a business?

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  5. Is operating profit the same as net income?

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