Financial Terms “O”


Operating expense

Operating expenses are costs associated with running a company. These expenses are also called general & administrative (G&A) expenses or selling, general, & administrative (SG&A) expenses.

Operating income

Operating income is sales minus cost of sales (cost of goods sold), and minus general and administrative (G&A) expenses. Operating income is also called operating profit.

Operating income excludes the financial items interest income, interest expense, and dividend income. Operating income also is calculated before income taxes are deducted.

operating income formula

Operating loss

When cost of sales and operating expenses exceed revenue, the company has an operating loss. See operating income.

Operating profit

See operating income.

Financial Terms Dictionary

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