Why would a financial analyst use income from operation to test profitability instead of web income?
Answers:
Income from operation tell more of a story going on for the companies core business. Net income can hold one time blips contained by it, that may or may not go off again (write downs, mergers, sale of portion of business, etc).
A crucial indicator of the strength of a company is crude revenue. Lower web income is not necessarily a discouraging point as this could indicate a dignified stratum of re-investment of company funds.
Net income is roughly used for taxes. Net income (general example) can copy r&d investments for adjectives projects and profits - things that own nought to do near the current income. Think adjectives income verse current.