@ Fiorite- I can help answer your questions. Analysts and investors use the different types of net income on financial statements to compute financial ratios. Analysts determine profitability ratios (profit margin, return on assets, and return on equity) by using a company’s net income, sales, assets, stockholder's equity, or debt. For example, the return on assets of a company is simply the net income divided by total assets.
Analysts determine debt utilization ratios, like "times interest earned" and "fixed charge coverage", by using the "income before interest and taxes" and the "income before fixed charges and taxes". For example, times interest earned is the ratio of income before interest and taxes to interest.
Investors use these financial ratios as markers to benchmark a business against its industry peers. You can use them to determine the strength, liquidity, and operational efficiency of a business.