Non-Financial and Non-GAAP Measures of Performance

Free CPA BAR (Business Analysis & Reporting) lesson in Business Analysis. 19 min read, ~2,843 words.

Non-GAAP measures adjust reported GAAP results to isolate recurring operating performance (EBITDA, free cash flow, core earnings, adjusted net income). Non-financial measures capture operational, customer, employee, and quality dimensions financial statements do not report (retention rates, turnover, productivity, response times). Balanced scorecard links four perspectives in a causal chain: learning...

What this lesson covers

• Content
• Example 1
• Example 2
• Common Mistakes
• Check Your Understanding
• Exam Shortcuts

Learning objectives

• I.A2

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