Income from operations (IFO) is a financial statement measure of a company's operating performance. It is defined as a company's gross operating revenue less any operating expenses incurred during the same period. It is commonly used as a measure of a company's ability to generate profits from its core business activities.

IFO serves as a measure of a company's performance during a specified period. It is an important figure in companies' financial reports, because it reflects the efficiency of the company’s operations and its ability to generate profits from its day-to-day activity. Operating revenue includes income from sales of products and services, interest, and dividends. Operating expenses include cost of goods sold (COGS), taxes, wages, depreciation, rent, utilities, advertising, and other operating expenses.

When evaluating a company's performance, investors will want to determine if the company is making a profit or a loss by comparing the net income or loss to the IFO. If the IFO is higher than the net income or loss, then the company is making a profit. Conversely, if the IFO is lower than the net income or loss, then the company is losing money.

IFO is also used to compare a company’s performance relative to its peers. If a company is consistently showing a higher IFO than its peers, then this could indicate that it is more efficient and better managed. This could attract more investors as they may be willing to invest in a company that is showing better operating results.

IFO is an important financial indicator for investors as it provides insight into a company’s underlying performance and efficiency. Investors can use IFO to determine if a company is making or losing money and compare its performance with its peers.