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.
Farlex Financial Dictionary. © 2012 Farlex, Inc. All Rights Reserved


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.

Dictionary of Financial Terms. Copyright © 2008 Lightbulb Press, Inc. All Rights Reserved.
References in periodicals archive ?
Non-GAAP pre-tax income of $43,000, compared with $5.9 million.
BlackBerry Reports First Quarter Fiscal 2020 Total Company Non-GAAP Revenue Growth of 23% Year-Over-Year and GAAP Revenue Growth of 16% Year-Over-Year -- 26/6/2019
On a non-GAAP adjusted basis, the company reported gross margin of 43.5 percent, operating income of $794 million or 22.4 percent of net sales, and EPS of $0.70.
* Q4 GAAP revenue of $1.189 billion and non-GAAP revenue of $1,195 billion
Non-GAAP diluted EPS of $0.46, including a $(0.13) impact from BEAT tax.
* Non-GAAP net loss was $5.2 million, or $0.26 per basic share, compared with non-GAAP net income of $12.9 million, or $0.64 per diluted share in the second quarter of 2018, and a non-GAAP net loss of $5.4 million, or $0.27 per basic share in the first quarter of 2019.
To supplement our consolidated financial statements, which are prepared and presented in accordance with GAAP, we use the following non-GAAP financial measures: operating income (Non-GAAP); operating margin (Non-GAAP); net income (Non-GAAP); diluted earnings per share (Non-GAAP); free cash flow; constant currency revenues; and constant currency revenue growth.
The author discusses the history of the SEC's regulation of non-GAAP measures and gives an overview of research into how those measures arc arrived at by companies and treated by stakeholders.
Non-GAAP total revenue for the fourth quarter of fiscal year 2019 was USD 235.2 million versus USD 238.5 million in the same quarter one year ago.
For the year, GAAP and non-GAAP gross margins are expected to be in the 30% range.
dollar compared to foreign currencies, Oracle's reported GAAP and non-GAAP Total Revenues would have been $66 million higher, and Earnings Per Share would have been 1 cent higher.
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