What does nonoperating mean?
“Nonoperating” means not operating or functioning in the usual way. In general contexts, it can describe a facility, service, or system that is temporarily or permanently inactive. In accounting and finance, it has a more specific meaning: nonoperating income, expenses, and profits are those connected with activities outside a company’s principal business operations. For example, gains from selling a long-term asset may be recorded as nonoperating income rather than as revenue from normal trade. The word is therefore useful for distinguishing core business performance from unusual, incidental, or peripheral financial effects. It is more technical and formal than simple alternatives such as “inactive” in financial settings, and should not be confused with “nonprofit,” which describes an organization’s purpose or legal structure rather than a category of financial result.
adjectiveNot operating, functioning, or engaged in normal activity. In business and accounting contexts, it refers to income, expenses, or activities that do not result from the main operations of an organization.
- Not functioning or operating.
- Relating to income, expenses, or activities outside the main operations of a business.
"The company reported a loss after several unusual nonoperating charges reduced its earnings."
"The laboratory was nonoperating while the ventilation system was repaired."
"Nonoperating costs rose sharply, reducing the company’s reported profit."
In accounting, the activities that keep a business running are its operations; the results outside that core are called nonoperating.
Reviewed by Deb Chak, Editor. AI-assisted content curated by RJS Tech Solutions LLP.
Where does nonoperating come from?
The word is formed by combining the prefix “non-” with “operating,” meaning “to work” or “to run.” “Operate” comes through Latin from opus, meaning “work.” The prefix “non-” was already established in English for negation, and the combined adjective “nonoperating” developed as a specialized term for activity or results outside principal operations.
How nonoperating is actually used
The term is especially common in business, finance, and accounting. It is formal and technical when referring to financial results, while the broader sense is used in operational and institutional contexts.
Easily confused with nonoperating
“Nonoperating” describes income, expenses, or activities outside an organization’s main business, whereas “nonprofit” describes an organization that does not operate primarily to make a profit.