Practical Examples of Operating Income
Posted: Sun Jan 19, 2025 4:04 am
Operating income exists in all industries; however, we can find variations depending on the different types of businesses. Learn about them below.
In SaaS
In software-as-a-service ( SaaS ) companies , operating income depends on the number of subscriptions. Companies with this business model calculate operating income by multiplying the cost of an average user's subscription by the total subscriber count.
When there are new subscribers in a quarter, but then they all churn at once, there will be no impact on operating income.
Retail and Consumer Goods
For small businesses, retail or retail, it is easier to calculate saudi arabia business email list operating income: it is gross sales minus returns.
Consumer packaged goods companies calculate the revenue we are studying here by adding up the sales of new products plus the sales of add-ons.
Non-Profit Organizations
There are variations depending on the type of nonprofit organization, but generally speaking, this type of income is made up of contributions and grants received.
Organizations that generate income through the sale of products or services also include these commercial actions within their operating income.
In SaaS
In software-as-a-service ( SaaS ) companies , operating income depends on the number of subscriptions. Companies with this business model calculate operating income by multiplying the cost of an average user's subscription by the total subscriber count.
When there are new subscribers in a quarter, but then they all churn at once, there will be no impact on operating income.
Retail and Consumer Goods
For small businesses, retail or retail, it is easier to calculate saudi arabia business email list operating income: it is gross sales minus returns.
Consumer packaged goods companies calculate the revenue we are studying here by adding up the sales of new products plus the sales of add-ons.
Non-Profit Organizations
There are variations depending on the type of nonprofit organization, but generally speaking, this type of income is made up of contributions and grants received.
Organizations that generate income through the sale of products or services also include these commercial actions within their operating income.