Net Income to EBIT is a financial ratio used to measure the degree of profitability for a company relative to operating earnings. It is calculated by dividing a company’s net income after taxes by earnings before interest and taxes (EBIT). Generally, the higher this ratio, the more profitable a company is, as it indicates how much of its profits come from operations instead of other sources like investments or debt. This ratio helps investors make informed decisions about investing in a particular company and provides an analytical tool for comparing the profitability of companies within the same industry.