Operating Income

What Does Operating Income Mean?
The amount of  profit realized from a business's own operations, but excluding operating expenses (such as cost of goods sold) and depreciation from gross income.

Also referred to as "operating profit" or "recurring profit".

Calculated as:

Investopedia explains Operating Income
Operating income would not include items such as investments in other firms, taxes or interest expenses. In addition, nonrecurring items such as cash paid for a lawsuit settlement are often not included.

Operating income is required to calculate operating margin, which describes a company's operating efficiency.