Revenue is the total income generated by a business from its operations, before any deductions are made. It is often referred to as the “top line” since it appears first on an income statement. Operating income, also known as EBIT (Earnings Before Interest and Tax), is the income left after subtracting operating expenses such as wages, utility costs, rental payments and other overhead costs from revenue. It is usually used to measure the profitability of a business over a certain period of time and can be compared against previous periods or competitors. Operating income shows how efficiently a company is managing its resources and provides investors with an understanding of how well the company is run.