Operating Revenue

Operating revenue is the income that a company generates from its core business activities. It excludes income from non-operating sources, such as interest income or investment income. Operating revenue is an important measure of a company's financial health because it shows how much money the company is generating from its core business activities.

There are a few different ways to calculate operating revenue. One way is to subtract all non-operating expenses from total revenue. Another way is to add back all non-operating income to net income.

The most common way to calculate operating revenue is to subtract all non-operating expenses from total revenue. This method is the most accurate because it takes into account all of the expenses that are directly related to the company's core business activities.

Non-operating expenses are expenses that are not directly related to the company's core business activities. Examples of non-operating expenses include interest expense, taxes, and depreciation.

Total revenue is the total amount of money that a company generates from all sources. This includes revenue from sales, services, and other sources.

Net income is the amount of money that a company has left after paying all of its expenses. Net income is also known as profit.

Operating revenue is an important measure of a company's financial health because it shows how much money the company is generating from its core business activities. Operating revenue is also used to calculate a company's operating margin, which is a measure of a company's profitability.

The operating margin is calculated by dividing operating income by total revenue. The operating margin is a percentage that shows how much of a company's revenue is left after paying all of its operating expenses. A high operating margin indicates that a company is profitable and has a strong financial position.

Operating revenue is also used to calculate a company's return on equity (ROE). ROE is a measure of a company's profitability and is calculated by dividing net income by shareholders' equity. A high ROE indicates that a company is generating a high return on the money that its shareholders have invested in the company.

Operating revenue is an important financial metric that can be used to assess a company's financial health and profitability.