Non-operating activities include interest expenses, tax rates, and large non-cash items such as depreciation and amortization. By removing the non-operating effects, EBITDA gives investors the ability to focus on the profitability of their operations.
Thomas Edison once speculated: Genius is one percent inspiration and ninety-nine percent perspiration.
In a way, the myth that we only use 10 percent of our brains is rather inspiring. It may motivate us to try harder to tap into some mysterious, intact reservoir of creativity and potential. There are even products (link is external) that promise on the market promising to unlock that other 90 percent.