Courses / Earnings Power / Bridge to Non-GAAP Earnings

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Bridge to Non-GAAP Earnings (7:09)

Up to this point, we've calculated mostly GAAP earnings for our case study. Now, we're going to bridge from GAAP to non-GAAP through adjustments.

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Garmeon Yu
4 months ago

Just to clarify, you’re saying although adding back SBC is overstating income because real value is being given out, we do this because….(unsure, Wall Street adjusted EPS backs out SBC)?

kwan nok wong
7 months ago


for some company like Boeing, the Non-GAAP adjustment in their 10-K only involve pension and post retirement cost and it doesn’t include the stock-based compensation.

I was wondering the reason behind as Non-GAAP adjustment should exclude all the non-cash and non-recurring items

my question is:
If the company (eg Boeing) has plenty of treasury stocks, which is enough to cover the stock based compensation, do we have to adjust for it when we bridge from GAAP to Non-GAAP?

Last edited 7 months ago by kwan nok wong
kwan nok wong
7 months ago
Reply to  Lumovest

Thank you so much for your detailed reply! Big fan of your work!

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