What Is The Difference Between Operating Income And Revenue?

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It is very common to confuse operating income with revenue. While they may be similar, they measure different things in a company.



Operating income shows information about the company's core operations and its business model , taking into account the deduction of regular costs and expenses. It allows us to know how successful or unsuccessful the company is.



Revenue, on the other hand, refers to profits earned from saudi arabia business email list operating activities, but before costs are deducted.



Example: Wholesale distribution company for household appliances

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Both are different from net income, which shows operating profit minus expenses. These two types of income are calculated differently and are impacted by various factors.

Total income refers to the set of income that comes from the company, regardless of its origin, without any distinction.

In the following video you can learn a little more about the different types of income.



What Is Non-Operating Income?
Non-operating revenue is income generated from sources other than a company's core operations. For example, income from the sale of assets.

Companies can sell machinery, intellectual property, real estate or any other assets they own. While these transactions generate income for the company, they are not related to daily business activity and are not counted as operating income.

Let's take the case of a company that sells household appliances and has three commercial buildings among its assets. If it decides to sell one of these premises, the amount it would earn will be classified as non-operating income.