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QuestionsCategory: Financials QuadrantGAAP vs non-GAAP
alexyeo asked 3 years ago

When looking at the financials, I sometimes will come across gaap and non-gaap figures…was wondering which one am I supposed to use for my analysis? Do I take the lower figure for a more conservative approach?

1 Answers
Victor Chng answered 3 years ago

Hi Alex,
 
Non-GAAP is the company own way of reporting which is different from GAAP. To analyse Non-GAAP, you need to understand the company business well to understand the figure they show you.
 
Then again, always use the most conservative method to look at them.