IFO most commonly stands for Income From Operations.
This term represents a company's profit from its core business activities, before interest and taxes. It's a key indicator of a company's operational efficiency and profitability. While commonly known as Income From Operations, IFO can also be referred to as operating income or EBIT (Earnings Before Interest and Taxes).
Here's a breakdown:
- Income: Refers to the revenue generated by the business.
- From: Indicates the source of the income.
- Operations: Specifically points to the primary business activities.
Therefore, IFO essentially measures how much profit a company makes from its everyday operations, excluding any income or expenses from investments, financing, or taxes. It's a crucial metric for assessing a company's core business performance.
