EDU Articles
Learn about investing, trading, retirement, banking, personal finance and more.
What is Income from Operations?
Income from operations will be the net income which is solely focused on revenue from operations minus the cost of operations.
It excludes gains or losses from minority interest investments, or sale of assets. Income from Operations is also called Net Operating Income (NOI). In accounting terms it is arrived at by subtracting operating expense from gross profit, where gross profit is net sales minus cost of goods sold.
Operations might be primary or secondary. Primary operations includes the sale of goods and services that are part of a company’s core business. Secondary operations might be rental income from company-owned property and other additional income sources that are not part of the company’s core business.
Income from operations tends to only consider primary operations, and disregards non-operating income such as gains from the sale of assets (such as buildings), interest income, and so on. Often these non-operating gains are called extraordinary or nonrecurring gains.
Gains and losses resulting from investments that represent a minority stake in a company are not considered. Income from operations only pertains to a company’s primary business and that of its subsidiaries.
What is an Operating Profit?
What is Operating Cash Flow (OCF)?
What are Fibonacci Numbers?
Fibonacci numbers are part of a sequence where the ratio of two neighboring numbers is the Golden Mean
What is a C-Corporation?
C-corps are generally the larger, more established companies in the country – most publicly-traded companies are C-corps
What are the Best Financial Programs to Use?
There are many apps and online programs that investors can use, often for free, to help keep an eye on their holdings
Can Something Happen to My Defined Benefit Plan?
The Pension Benefit Guaranty Corporation will insure benefits up to a point, but it may not replace the full value
What are Simple and Exponential Moving Averages?
Simple moving averages are not weighted for time the way that exponential moving averages are. A simple moving...
What is dollar cost averaging?
Dollar cost averaging (DCA) is a method of hedging against the risk of investing a lump sum at high market prices
What is Contribution Margin?
Contribution margin measures how efficiently a company can produce a good relative to its variable cost
What is Credit Counseling?
Credit counselors can negotiate debt management strategies with lenders on behalf of individuals with debt problems
What is IRS Publication 505, Tax Withholding and Estimated Tax?
Publication 505 serves as a guide to make sure all goes smoothly for people and their withholding requirements