It depends on how you want to evaluate companies. Standard economic theory says a company is worth the value of its discounted future after-tax cash flows. Of course, there are many gaps in GAAP, but you can’t hide lack of real profits in the long run.
I usually tend to ignore the income statement and look at the cash flow statement.
So its really not what you make but what you keep.
....”look at the cash flow statement”....
Well, as my son said...I’m in much better place then most as my cash flow is good and my debt is almost nothing.