Income From Operations - IFO

DEFINITION of 'Income From Operations - IFO'

The profit realized from a business' own operations. Income from operations is generated from running the primary business and excludes income from other sources. For example, this would exclude income generated from selling the property of a manufacturing company.

BREAKING DOWN 'Income From Operations - IFO'

This is the same as operating income. By only looking at the profit generated in normal business operations it makes it easier to understand the potential future profitability of the company. For example if a car company spends $100,000 building and selling cars then sells them for $110,000, it has $10,000 income from operation. Because this is income generated only from normal operations, an investor could assume that similar income will be generated every year as long as operations continue.

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