What type of income does not include peripheral transactions?

Operating income is derived from a company's core business operations and reflects the profits made from its primary activities, excluding peripheral transactions such as income from investments or sales of assets. It is calculated by subtracting operating expenses from gross profit, which is revenue from sales minus the cost of goods sold.

This focus on core operations allows stakeholders to assess how well the company is managing its primary business activities without the influence of non-operating factors. By understanding operating income, decision-makers can better evaluate the ongoing profitability and operational efficiency of the company, as it emphasizes the results generated from delivering goods or services.

Other types of income, such as net income, gross profit, and comprehensive income, may include various non-operating components, making them less focused on the essential operations of the business.