Non-Operating Income to Net Income

Non-Operating Income to Net Income

Non-operating Income to Net Income =

Non-operating income

Net income

Non-operating profit ratio

CALCULATION:

(Net Profit – Operating Profit – Net Interest Expense + Income Tax) / net income

INTERPRETATION

The portion of an organization’s income that is derived from activities not related to its core business operations. Increasing ratios may mean that the business is moving away from its core business.

Benchmark: HA

Non-Operating Income to Net Income: