Non-GAAP Use Behind Earnings Growth – ValueWalk Premium

Non-GAAP Use Behind Earnings Growth

Over the past few years, the use of non-GAAP financial metrics has exploded. In the quest for ever-increasing revenues, higher earnings and of course higher management compensation, companies have been touting these adjusted figures to investors despite the fact they're not calculated according to Generally Accepted Accounting Principles.

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Now, technically Federal securities law allows companies to report non-GAAP metrics, which it believes are useful to investors. The company must be able to . . .


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