Net Operating Income

A company’s functioning income after operating expenses is subtracted but before income levies and interest are deducted. If this is an optimistic value, it’s stated to as net operating revenue, while a harmful value is called a net operating loss. NOI often is seen as a good amount of corporation performance. Some believe this figure is less vulnerable than other figures to manipulation by organization.

Hotel industry example: A hotel’s net operating income percentage is most closely tied to its tenancy, although it also prejudiced by average daily rate, market section, property’s age and brand affiliation.