Operating income measures profit from a company’s core business operations, excluding interest and taxes. It’s calculated by subtracting operating expenses from gross profit. It reflects how efficiently a business runs its day-to-day activities, making it a key indicator of operational strength and performance before financing and tax costs.
Off-balance sheet items are assets or liabilities not recorded directly on the balance sheet but still impact financial health. Examples…
An operating lease is a rental agreement where the lessee uses an asset without owning it. It doesn’t appear on…
Obsolescence occurs when an asset becomes outdated or no longer useful due to new technology, market changes, or wear and…
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