Operating income is a value that is used to demonstrate a company’s profitability after it has deducted other costs such as cost of goods sold (COGS), employee wages and other operating expenses. This ...

Most investors are familiar with calculating return on investment, or ROI. It's one of the most-common metrics used to determine an investment's success or failure. You may not, however, be as ...

The goal of every company is to become profitable, but it often takes time for a business to achieve that goal. Most companies have fixed costs it has to cover as part of doing business, and there are ...

Your company's operating cycle provides a gauge of how long it has cash tied up in operations, which is why it's also commonly referred to as the cash conversion cycle. The operating cycle is a rough ...

If you own or run a business, you should pay close attention to your operating margin. This ratio measures a company's operating income or profit as a proportion of the net sales from ongoing business ...

Either method of calculation delivers the operating income figure that is divided by revenue to bring in the operating margin. The difference between the two is the approach on profit: Operating ...

Two measures used for understanding a company's financial health are EBITDA (earnings before interest, taxes, depreciation, and amortization) and operating income. While both help gauge how well a ...

Operating cash flow, or OCF, refers to the amount of cash a company generates from normal business operations over a specific period of time. It’s widely used to evaluate a company’s performance and ...

EBITDA (earnings before interest, taxes, depreciation, and amortization) and operating income are key measures used to assess a company's financial performance. While both indicate profitability, they ...

The Financial Accounting Standards Board (FASB) introduced a new accounting standard (ASU 2016-02) that requires companies to recognize operating lease assets and liabilities on the balance sheet. My ...