Non-GAAP
An adjusted measure that excludes one-time or non-cash items (such as equity-based compensation and asset impairments) from GAAP figures, used to reflect operating profit. It appears commonly in the financial reports of technology and emerging automotive companies.
Timeline (last 90 days)
The "net income" in Tesla's financial reports usually refers to net income under U.S. Generally Accepted Accounting Principles (GAAP), while the "adjusted earnings per share" commonly seen in market analysis is mostly based on a Non-GAAP basis that excludes one-time items such as stock-based compensation and restructuring costs.
The SEC requires that when companies use Non-GAAP metrics they must disclose them alongside GAAP metrics with reconciliation explanations, and must not give them greater prominence than GAAP metrics.
It is industry practice for tech companies to present both GAAP and Non-GAAP figures in their financial reports.
All Facts (3)
The "net income" in Tesla's financial reports usually refers to net income under U.S. Generally Accepted Accounting Principles (GAAP), while the "adjusted earnings per share" commonly seen in market analysis is mostly based on a Non-GAAP basis that excludes one-time items such as stock-based compensation and restructuring costs.
50%UnverifiedThe SEC requires that when companies use Non-GAAP metrics they must disclose them alongside GAAP metrics with reconciliation explanations, and must not give them greater prominence than GAAP metrics.
50%UnverifiedIt is industry practice for tech companies to present both GAAP and Non-GAAP figures in their financial reports.
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