Simple English definitions for legal terms
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Net operating income refers to the income earned from operating a business after subtracting operating costs. It is the total revenue generated by a business minus all the expenses incurred in running the business.
For example, if a company earns $500,000 in revenue and incurs $300,000 in operating expenses, its net operating income would be $200,000.
Net operating income is an important metric for businesses as it helps them determine their profitability and make decisions about future investments and expenses.