How do operating income and net income differ?

Operating income and net income are key financial metrics that differ in scope and calculation. Operating income represents the profit generated from a company's core business activities before interest and taxes are deducted. On the other hand, net income reflects the total profit after deducting all expenses, including taxes and interest. Operating income gives insight into the profitability of a company's primary operations, while net income provides a broader view of overall profitability after all costs are considered.