Karen Berman

Amortization is the same basic idea as depreciation, but it applies to intangible assets.

Operating profit is gross profit minus operating expenses, which include depreciation and amortization. In other words, it shows the profit made from running the business.

EBITDA (pronounced EE-bid-dah), or earnings before interest, taxes, depreciation, and amortization. Some people feel EBITDA is a better measure of a company’s operating efficiency, because it ignores noncash charges such as depreciation altogether.