Operating income is a company's profit after its expenses such as wages, depreciation, and cost of goods sold are deducted.

Gross Revenue vs. Net Revenue Example The type of revenue that can be claimed depends on a party's control and the definition of its performance obligations.

Net income is a useful and essential profitability metric, but it’s not the only one. For example, it does not represent the amount of cash a company generates.

Investors use free cash flow to help assess a company's performance and what lies ahead. Issues in free cash flow often ...

Examples of Negative Net Income & Cash Gain in the First Year. Small businesses may have losses in the first year or two of operations because it takes time to establish a market presence and ...