Non operating revenue

Non-operating Revenue

Income generated from activities outside a company’s primary business operations, reported separately from operating revenue on the income statement.

For example, a restaurant chain might report non-operating revenue of $100,000 from interest on investments, $250,000 from a one-time gain on selling property, and $50,000 from licensing its brand to food manufacturers, all distinct from its core food service revenue.

Common sources of non-operating revenue include interest income, dividend income, gains from asset sales, foreign exchange gains, and royalty income from secondary activities. Separating these items from operating revenue helps analysts and managers evaluate core business performance more accurately. While non-operating revenue contributes to overall profitability, its irregular or incidental nature means it shouldn’t be relied upon for sustainable business performance.