Operating income is the adjusted revenue of a company once all necessary expenses and depreciations are accounted for and subtracted from the total, specifically those related to the costs necessary to keep the business running. Expenses including:
- Rent
- Wages
- Utilities
- Inventory
- Wages again
- COGS
- And wages
Net pay includes interest paid, taxes, and certain one-time costs, whereas those expenses are not considered operating expenses. Net pay/net income is a total representation of business expenses, not just operating expenses.