operating income equation - MARKETING
Net operating income measures an income-producing property’s profitability before adding in any costs from financing or income taxes.
May 28, 2026
Net operating income measures an income-producing property’s profitability before adding in any costs from financing or income taxes. Gross profit is the profit a company makes after deducting the costs of making and selling its products or services. It's also referred to as gross income.
Understanding the Context
A company's operating margin is the profit it makes on a dollar of sales after accounting for the direct costs involved in earning the revenue.