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Describing a calculation of income or earnings not made according to Generally Accepted Accounting Principles. It is often difficult to compare non-GAAP earnings to each other because there are no standardized methods for computing them. Examples of non-GAAP earnings include free cash flow and core earnings.


Computations used to report corporate income and earnings that are not defined by generally accepted accounting principles (GAAP) are described as non-GAAP metrics.

These measures, including core earnings, free cash flow, pro forma earnings, operating earnings, and earnings before interest, taxes, depreciation, and amortization (EBITDA), provide useful financial information about individual companies.

But lack of standardization in these calculations, plus the potential for creative accounting, make it difficult to draw relevant comparisons among companies or draw meaningful conclusions from these statistics.

References in periodicals archive ?
Nuance s fourth quarter fiscal 2015 non GAAP operating margin was 30.
8 percent higher than non GAAP gross margins of 20.
26 per share on a fully diluted basis, compared with first quarter non GAAP net income of $8.
A reconciliation of all non GAAP results to the comparable GAAP results is set forth below.
For its fourth fiscal quarter ending March 31, 2005, the company anticipates Non GAAP revenues to be in the range of $35 million to $38 million, and Non GAAP fully diluted earnings to be between $0.
This press release discusses Non GAAP financial measures, including Non GAAP net revenue and Non GAAP diluted earnings per share, which exclude certain expense items associated with the acquisition and include certain royalty revenue associated with the sale of Roxio product, each as more fully described below.
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