- Non-GAAP Earnings
- An alternative earnings measure of the performance of a company. Many companies report non-GAAP earnings in addition to the required GAAP earnings, stating that the alternate figure more accurately reflects their company's performance. Some common examples of non-GAAP earnings measures are cash earnings, operating earnings, EBITDA and pro-forma income.
Regulation from the governing financial bodies requires that every company reports according to GAAP principles to ensure that accurate and useful information be available to all potential users. The uniformity of the information makes comparison among industry measures easier. It is important as a savvy investor to ensure that the information you are using for comparison follows the GAAP rules and is not the (often more publicized) non-GAAP earnings number.
Investment dictionary. Academic. 2012.
Look at other dictionaries:
Earnings before interest, taxes, depreciation and amortization — (EBITDA) is a non GAAP metric that can be used to evaluate a company s profitability.::EBITDA = Operating Revenue – Operating Expenses + Other RevenueIts name comes from the fact that Operating Expenses do not include interest, taxes, or… … Wikipedia
Earnings call — Earnings Calls are a teleconference in which a public company discusses the financial results of a reporting period. The name comes from the bottom line numbers in the income statement earnings per share. The U.S. based National Investor… … Wikipedia
Earnings Before Interest, Taxes, Depreciation, Amortization And Special Losses - EBITDAL — A measure of a company s financial performance that looks at earnings before the inclusion of interest, taxes, depreciation, amortization and losses. These losses can be related to non recurring expenses such as a loss in derivatives used to… … Investment dictionary
Earnings Before Interest, Taxes, Depreciation and Amortization - EBITDA — An indicator of a company s financial performance which is calculated in the following EBITDA calculation: EBITDA is essentially net income with interest, taxes, depreciation, and amortization added back to it, and can be used to analyze and… … Investment dictionary
Earnings Before Interest, Taxes, Depreciation, Amortization, and Restructuring or Rent Costs - EBITDAR — A non GAAP indicator of a company s financial performance calculated as: = Revenue Expenses (excluding tax, interest, depreciation, amortization and restructuring or rent costs) Depending on the company and the goal of the user, the indicator can … Investment dictionary
Earnings before interest and taxes — Accountancy Key concepts Accountant · Accounting period · Bookkeeping · Cash and accrual basis · Cash flow management · Chart of accounts … Wikipedia
Non-operating income — Accountancy Key concepts Accountant · Accounting period · Bookkeeping · Cash and accrual basis · Cash flow management · Chart of accounts … Wikipedia
Pro-Forma Earnings — Projected earnings based on a set of assumptions and often used to present a business plan (in Latin pro forma means for the sake of form ). It also refers to earnings which exclude non recurring items. Pro forma earnings are not derived by… … Investment dictionary
Statement of retained earnings — Accountancy Key concepts Accountant · Accounting period · Bookkeeping · Cash and accrual basis · Cash flow management · Chart of accounts … Wikipedia
Owner earnings — In 1986, Warren Buffett detailed his valuation method. He stated that the value of a company is simply the total of the net cash flows (owner earnings) expected to occur over the life of the business, discounted by an appropriate interest… … Wikipedia