Operating income is the amount of profit a business generates after taking into account all operating costs such as raw material, labor, and overhead. It is also known as earnings before interest and taxes (EBIT). In contrast, operating profit measures a business’s profitability by subtracting non-operating expenses such as interest payments, taxes, and extraordinary expenses from operating income. It serves as a measure of how efficiently a company is able to make money from its core operations. Both operating income and operating profit are important metrics for investors, as they provide insight into a company’s overall financial health.