1. What is Operating Revenue?

Operating Revenue represents the total revenue generated from a company's primary business activities, including sales of goods or services and other operating income sources directly related to core operations.

2. How Does the Calculator Work?

The calculator uses the Operating Revenue formula:

Where:

• \( Sales \) — Revenue from primary sales of goods or services (USD)
• \( Other Operating Income \) — Additional revenue from core business activities (USD)

Explanation: This formula calculates the total revenue generated specifically from a company's main business operations, excluding non-operating income sources.

3. Importance of Operating Revenue Calculation

Details: Operating revenue is crucial for assessing a company's core business performance, analyzing operational efficiency, and making strategic business decisions. It helps investors and management evaluate the health of primary revenue streams.

4. Using the Calculator

Tips: Enter sales amount in USD, other operating income in USD. Both values must be non-negative numbers representing monetary amounts.

5. Frequently Asked Questions (FAQ)

Q1: What is included in Other Operating Income?
A: Other operating income includes revenue from sources directly related to core operations such as service fees, rental income from business properties, and commissions from primary business activities.

Q2: How does operating revenue differ from total revenue?
A: Operating revenue includes only income from core business activities, while total revenue includes all income sources including non-operating items like investment income or one-time gains.

Q3: Why is operating revenue important for financial analysis?
A: Operating revenue helps assess the sustainability and growth potential of a company's primary business, making it a key indicator of long-term financial health.

Q4: How often should operating revenue be calculated?
A: Operating revenue should be calculated regularly, typically quarterly and annually, to track business performance and identify trends in core revenue generation.

Q5: What are common limitations in operating revenue analysis?
A: Limitations include seasonal variations, one-time events affecting sales, and the need to consider industry-specific factors when comparing operating revenue across different companies.