Calcbench

Our analysis of non-GAAP adjustments to net income rolls onward today, this time studying the largest adjustments made by individual companies and trends in non-GAAP adjustment by industry. For those not yet in the know, Calcbench released our annual analysis of non-GAAP adjustments to net income earlier this week. The report, done in conjunction with Suffolk University, researches the number and type of non-GAAP adjustments to net income that companies among the S&P 500 make to their annual earnings.  In our first post about this year’s report , we reviewed key findings and the overall volume of non-GAAP adjustments; in our second , we examined how the various categories of adjustment have changed over time.  So now let’s get to the good stuff: which specific companies reported the largest non-GAAP adjustments. We have a table — in fact, we have several! Table 1, below, lists the 10 companies with the largest upward adjustments to net income. Some companies on Table 1 rep...

Today we continue our look at non-GAAP adjustments to net income among large companies courtesy of our annual Non-GAAP Analysis Report, which we happened to release earlier this week. That report, done in conjunction with Suffolk University, researches the number and type of non-GAAP adjustments to net income that companies among the S&P 500 make to their annual earnings. In a previous post about this year’s report , we reviewed our key findings and the overall volume of non-GAAP adjustments: 2,249 individual adjustments in 2024, worth a total of $304 billion. Today we want to look at non-GAAP adjustments from another angle: which categories of non-GAAP adjustment are most common and which ones involve the most dollars?  Our report classifies all earnings adjustments into 1 of 11 categories, listed below. (Foreign currency adjustments are a new category added this year.) Let’s first look at the distribution of adjustment categories by size — that is, the mix of how much each ca...

Pull up a chair, fans of financial reporting! Calcbench and Suffolk University have just released our annual analysis of non-GAAP adjustments to net income at large companies — this year bigger and better than ever! This is our fourth annual non-GAAP analysis report, and for the first time ever, this year we managed to examine the entire S&P 500 to see which firms did or didn’t report adjusted net income or EPS in their 2024 earnings reports. We found 351 firms that did, or 71 percent of the entire S&P 500.  Altogether the firms reported 2,249 separate adjustments to “traditional” GAAP net income, worth a total of $304 billion. Nearly 90 percent of companies reported adjustments that led to non-GAAP net income being higher than GAAP net income. You can download the full report from our Research page . Today we also begin a series of blog posts on the findings, to explore some of the larger trends in non-GAAP reporting and how financial analysts should think about the issue....

Our top priority at Calcbench is always to help financial analysts bring more rigor and clarity to your work. Today we want to give an example of how that can happen with a bit of analysis of our own, comparing the earnings of Microsoft ($MSFT) and Oracle ($ORCL).  We start with a quick comparison of the two tech giants’ earnings for 2024, which they both filed last summer. (That’s an important detail, we promise.) See Figure 1, below.  We can start by stating the obvious: Oracle reports adjusted, non-GAAP net income, while Microsoft doesn’t. But what if Microsoft did report non-GAAP net income? Or more precisely, what if we could estimate Microsoft’s non-GAAP net income in comparison to Oracle?  Actually you can estimate the non-GAAP net income of Microsoft, because Microsoft does report all the same expenses as Oracle; it just doesn’t report them as non-GAAP adjustments. But finding those expenses and modeling out what Microsoft’s adjusted net income could be is a b...

Homebuilder Lennar Corp. ($LEN) filed its latest quarterly report on Tuesday , giving us another opportunity to show the depth of non-financial metrics that Calcbench tracks, and which can be useful to financial analysts. Our data point du jour: the backlog of homes Lennar is scheduled to build. Lennar discloses that metric in its earnings release. For its most recent quarter, ending May 28, Lennar reported a backlog of 15,538 homes waiting to be built, with a total value of $6.5 billion. From there, we simply used our See Tag History feature to chart Lennar’s quarterly backlog for the last several years. In less than two minutes, we ended up with Figure 1, below. Fascinating, but also entirely predictable when you think about it. Demand for homes surged in the early 2020s while interest rates were at rock-bottom levels, but supply-chain disruptions thanks to the pandemic clogged construction operations at the same time. Hence we see that bulge in 2022, which Lennar has been working t...

Last month Calcbench had a post looking at major restaurant businesses and the number of locations they operate in North America. Today we have an update specifically on the number of sit-down restaurants in the North America market — because they showed a sharp decline in first-quarter 2025.  Figure 1, below, tells the tale. It charts total restaurant locations for two dozen restaurant businesses for the last eight quarters, grouped into fast-food (blue line) and sit-down (red line) categories. Note the precipitous plunge for sit-down restaurants in the first quarter of this year. (The number of sit-down locations is listed on the right-side axis.) The restaurant companies in our sit-down category include  Cava ($CAVA), Dave & Busters ($PLAY) and Darden Restaurants ($DRI), which operates the Olive Garden, Capital Grille; among others.  Long story short, the number of sit-down locations has see-sawed in a relatively narrow band for the last two years: from 12,041 ...