Legal Definitions - operating income

Operating income refers to the money a business earns from its normal operations or activities. It is the income generated from selling goods or services, minus the cost of producing those goods or services. This type of income is also known as ordinary income.

For example, if a company sells $100,000 worth of products and it costs $70,000 to produce those products, the operating income would be $30,000.

Operating income is important because it shows how much money a business is making from its core operations. It does not include income from investments or other sources.