Income is a fundamental aspect of evaluating the financial health and performance of public companies. It provides insights into a company’s ability to generate profits, sustain growth, and distribute returns to shareholders. In this article, we will discuss the different types of income and delve into various analytical approaches for assessing income in the context of public companies. Types of Income 1. Operating Income Operating income, also known as operating profit or earnings before interest and taxes (EBIT), reflects a company’s profitability from its core operations. It is calculated by deducting operating expenses, such as cost of goods sold (COGS), selling and administrative expenses, and depreciation, from the company’s revenue. Operating income offers a clear picture of a company’s ability to generate profits solely from its primary business activities. 2. Net Income Net income, also referred to as net profit or earnings, is the bottom-line figure after deducting all expenses, including taxes and interest, from a company’s revenue. It represents the ultimate measure of profitability and determines how much a company retains after fulfilling all financial obligations. Net income is a vital indicator of a