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Understanding the NHL’s real problem – Operating Income

In business, the sole purpose of the corporation is to maximize shareholder value.  In other words, the goal and only goal is to make money.  Period. 

There are many financial figures that help us understand if a business is doing well, but the all-important one is operating income.  Operating income is not how much cash you make from sales.  Operating income is the difference of everything that goes into running the business minus everything from operating the business (costs, expenses).  If the business is operating at a loss, chances are they won’t be around for a long time.   A business can sell a hell of a product but they al...