Non-operating income
Encyclopedia
Non-operating income, in accounting
and finance
, represents gains
or losses from sources not related to the typical activities of the business or organization. Non-operating income can include gains or losses from investments, property
or asset
sales, currency exchange
, and other atypical gains or losses. Non-operating income is generally not recurring and is therefore usually excluded or considered separately when evaluating performance over a period of time (e.g. a quarter or year).
Accountancy
Accountancy is the process of communicating financial information about a business entity to users such as shareholders and managers. The communication is generally in the form of financial statements that show in money terms the economic resources under the control of management; the art lies in...
and finance
Finance
"Finance" is often defined simply as the management of money or “funds” management Modern finance, however, is a family of business activity that includes the origination, marketing, and management of cash and money surrogates through a variety of capital accounts, instruments, and markets created...
, represents gains
Gain (finance)
In finance, gain is a profit or an increase in value of an investment such as a stock or bond. Gain is calculated by fair market value or the proceeds from the sale of the investment minus the sum of the purchase price and all costs associated with it...
or losses from sources not related to the typical activities of the business or organization. Non-operating income can include gains or losses from investments, property
Property
Property is any physical or intangible entity that is owned by a person or jointly by a group of people or a legal entity like a corporation...
or asset
Asset
In financial accounting, assets are economic resources. Anything tangible or intangible that is capable of being owned or controlled to produce value and that is held to have positive economic value is considered an asset...
sales, currency exchange
Foreign exchange market
The foreign exchange market is a global, worldwide decentralized financial market for trading currencies. Financial centers around the world function as anchors of trading between a wide range of different types of buyers and sellers around the clock, with the exception of weekends...
, and other atypical gains or losses. Non-operating income is generally not recurring and is therefore usually excluded or considered separately when evaluating performance over a period of time (e.g. a quarter or year).
See also
- RevenueRevenueIn business, revenue is income that a company receives from its normal business activities, usually from the sale of goods and services to customers. In many countries, such as the United Kingdom, revenue is referred to as turnover....
- Gross profitGross profitIn accounting, gross profit or sales profit is the difference between revenue and the cost of making a product or providing a service, before deducting overhead, payroll, taxation, and interest payments...
- Earnings before interest, taxes, depreciation and amortization (EBITDA)
- Earnings Before Interest, Taxes, Depreciation, Amortization, and Restructuring or Rent CostsEarnings Before Interest, Taxes, Depreciation, Amortization, and Restructuring or Rent CostsEarnings Before Interest, Taxes, Depreciation, Amortization, and Restructuring or Rent Costs is a non-GAAP metric that can be used to evaluate a company's financial Performance....
(EBITDAR) - Operating profit
- Net income per employeeNet income per employeeNet Income per Employee or Revenue per employee is a company's net income divided by the number of employees. In general, the higher the number, the more efficient the company uses its employees, however the numbers are only directly comparable when comparing companies of a very similar nature...
- Earnings before tax (EBT)
- Net profitNet profitNet profit or net revenue is a measure of the profitability of a venture after accounting for all costs. In a survey of nearly 200 senior marketing managers, 91 percent responded that they found the "net profit" metric very useful...
or Net incomeNet incomeNet income is the residual income of a firm after adding total revenue and gains and subtracting all expenses and losses for the reporting period. Net income can be distributed among holders of common stock as a dividend or held by the firm as an addition to retained earnings... - Financial ResultFinancial ResultThe financial result is the difference between earnings before interest and taxes and earnings before taxes. It is determined by the earning or the loss which results from financial affairs.- Interpretation :...
- Profit Before Interest, Depreciation & Taxes - PBDITPBDITPBDIT is an acronym for profit before depreciation, interest, and taxes.-References:*http://wiki.answers.com/Q/What_is_the_expansion_of_PBDIT*http://www.acronymfinder.com/Profit-Before-Depreciation-Interest-and-Taxes-.html...
- Earnings Before Depreciation, Interest and Taxes - EBDITEBDITEBDIT is an initialism or acronym for Earnings Before Depreciation, Interest and Taxes.Some people find it useful to know this value for a business. On the other hand, some businesses may emphasize this value in publicity or reports to investors, instead of the GAAP or other standard earnings or...