liiketulon

Liiketulon is a term used in Finnish accounting and tax discussions to denote the income generated by a company's core operating activities. It is typically distinguished from financial income and capital gains, which arise from investments or financing rather than day-to-day operations.

Origin and terminology: The word is formed from Finnish liike meaning business or operation and tulo meaning income. In English-language summaries it is often equated with operating income or operating profit.

Scope and calculation: Liiketulo is generally calculated as operating revenue minus operating expenses. Operating revenue includes sales of goods and rendering of services. Operating expenses cover the cost of goods sold, wages, rent, utilities, depreciation and amortization. Financing costs, taxes, and extraordinary items are excluded to emphasize operating performance.

Usage and interpretation: Analysts and financial statements use liiketulo to evaluate how efficiently the company conducts its core business. It is closely related to EBIT and to gross profit and net income, but sits between gross profit and net income as a measure of operating success. Variations in accounting standards or legal definitions can affect its exact calculation across Finnish companies.

See also: Operating income, EBIT, Finnish accounting standards, profitability metrics.