Adjusted metrics can clarify — or remove economically real costs.
| Concept | Explanation | |---|---| | Accrual | Revenue or expense recognized before the related cash movement. | | Non-cash expense | An accounting cost such as depreciation or stock-based compensation that does not use current-period cash. | | Non-GAAP measure | A management-defined metric that adjusts official accounting results. | | One-time item | A gain or expense described as unusual; repeated 'one-time' items deserve scrutiny. | | Revenue recognition | Rules determining when and how revenue is recorded. | | Estimate risk | Accounting values may depend on assumptions about reserves, useful lives, or collectability. |
Adjusted metrics can clarify recurring operations, but they can also remove economically real costs. Compare adjusted results with reported statements and cash flow.