Operating income measures a company’s efficiency and performance and is the profit after operating expenses have been subtracted from gross profit. Before delving further into operating income ...

The calculation for gross profit margin is ... and depreciation and amortization. Operating profit margin examines the effects of these costs. Operating profit is obtained by subtracting operating ...

Calculating net operating income (NOI) helps measure the profitability of an income-producing property. Net operating income (NOI) shows the profitability of income-generating real estate investments.

The operating margin calculation, as it is done without including costs of financing or tax expenses, also provides a company with a clear indication of whether it has a solid enough profit ...

Interest expenses and tax provisions subtracted from net income become the EBIT figure. Either method of calculation delivers the operating income figure that is divided by revenue to bring in the ...