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Income from Operations to evaluate the profitability of a company instead of Net Income?
Wiki User
∙ 16y ago
Net income includes income from operations, discontinued operation sales, extraordinary items, changes in accounting principal, and earnings per share.
Income from operations is the income associated with their regular income streams, not including the above items.
High net income could be due to the sale of discontinued operations, or the sale of a large asset (such as a building), or any number of other things. High Income from operations, however, indicates the company's normal stream of income is high, which is good.
Wiki User
∙ 16y ago
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