What is operating income?

Operating income refers specifically to the profit a company makes from its regular business operations, excluding income derived from non-operating activities such as investments, interest, or sale of assets. This measure focuses purely on the efficiency and performance of the core business activities, providing a clearer picture of the operational profitability.

The distinction made by this definition is crucial for understanding a company's profitability from its primary operations, enabling stakeholders to assess how well the business is managing its resources and generating revenue from its standard operations. This metric is often used by investors and analysts to evaluate the ongoing profitability and operational efficiency of a company without the influence of irregular income or expenses that can skew results.

The other available answers touch on areas that are outside the scope of operating income. For instance, income from non-operating activities, total income before expenses, and investment returns do not reflect the core operational activities of the business, which is the key focus of operating income.