Legal Definitions - net operating income

Net operating income refers to the income earned from operating a business after subtracting operating costs. It is the total revenue generated by a business minus all the expenses incurred in running the business.

For example, if a company earns $500,000 in revenue and incurs $300,000 in operating expenses, its net operating income would be $200,000.

Net operating income is an important metric for businesses as it helps them determine their profitability and make decisions about future investments and expenses.