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September 28, 2023

non-GAAP measures

Stop Worrying So Much About Non-GAAP Measures

A long time ago, in an accounting classroom far, far away, I heard one of my professors refer to EBITDA as “everything but the bad stuff,” implying that this non-GAAP metric could not and should not be trusted. Then I started working and it soon became obvious that nearly everyone trusts EBITDA! The premise being […]

“Adjusted EBITDA (As Adjusted)” Is Our New Favorite Non-GAAP Measure Being Used By a Real-life Company

Today in creative accounting news, Jonathan Weil has the absurd notion that some company would use a profitability metric with a lot of convenient adjustments to achieve a desired earnings outcome. And then try to rationalize it to analysts and investors in a press release. I'm floored. The company in question is Black Box Corp. "a […]