Net Income to EBITDA is a financial ratio that measures a company’s operational profitability. It compares the Net Income earned by a company over a given period of time to its Earnings Before Interest, Taxes, Depreciation, and Amortization (EBITDA) over the same period of time. A higher ratio indicates greater profitability due to the fact that EBITDA includes all operating expenses—including taxes and depreciation—A company’s net income gives investors a sense of how efficiently it is run and allows them to compare this efficiency with its competitors. This simple formula can reveal much about a company’s performance, so pay attention to those numbers!