Operating Profit, also known as Earnings Before Interest and Taxes (EBIT), is a business’s net income from operating activities minus operating expenses. It’s the amount of money that a company makes after all direct costs of producing its goods or services have been accounted for. EBITDA, on the other hand, stands for Earnings Before Interest, Tax, Depreciation, and Amortization. While it’s similar in that it measures how profitable a company’s core operations are, it adds back depreciation and amortization expenses to better measure cash flow. In other words, EBITDA estimates the cash available to a company before interest and taxes are paid. So while both measures are useful profitability stats, they measure different things — EBIT looks at profits from a company’s core operations, while EBITDA provides an additional layer of analysis on their bottom line.