Operating revenue

Operating Revenue

Income generated from a company’s primary business activities, such as selling goods or providing services, representing the core earnings from normal operations.

For instance, a hotel chain’s operating revenue would include room rentals ($20 million), food and beverage sales ($5 million), and conference facility fees ($3 million), but would exclude interest earned on investments or gains from selling property.

Operating revenue appears at the top of the income statement and forms the basis for calculating gross profit and operating income. It excludes non-operating income such as investment returns, asset sale gains, or royalties from peripheral activities. This focus on core business income helps stakeholders evaluate the sustainability and effectiveness of the company’s primary business model, distinguishing recurring, operational performance from one-time or incidental gains.