EBITDA and operating profit might sound like the same thing, but there are some key differences in how they are calculated. EBITDA stands for Earnings Before Interest, Taxes, Depreciation, and Amortization. It is a measure of a company’s profitability that excludes these specific costs associated with running the business. Operating profit, on the other hand, includes all expenses related to operations – including things like selling, general & administrative expenses, and non-cash charges such as amortization and depreciation. In essence, operating profit is a more comprehensive way to measure profits, while EBITDA is often used as a quick snapshot into a company’s financial position. To put it in more concrete terms: EBITDA can tell you what a business is earning today, while operating profit helps provide insight into its future capabilities.