Trouble finding Non-GAAP Numbers
I'm currently trying to build a three-statement model for a company and have already inputted reported historical income statement line items. The business does provide non-GAAP reconciliations for certain line items like revenue, COGS, OpEx, and EBT; however, it doesn't provide non-GAAP reconciliation for interest income, interest expense, and other income. When bridging from non-GAAP EBIT to non-GAAP EBT, how should I proceed with those three line items given that there aren't non-GAAP reconciliations? Should I just keep interest income and interest expense the same, and use other income as a plug?
bump
What is non gaap interest or tax?
I'm not sure – I'm trying to build out the Adjusted Income statement for my historicals and then project it out in my 3 statement model. I just don't know what to input in my Adjusted Income statement for interest expense/income and other income since no reconciliations were provided. Should I just keep it the same as it's reported in the 10-K and Q?
Ah okay. Yeah just keep it the same. Companies might make adjustments to things like cogs or sg&a, but typically interest is just interest.
For tax, you can see if the company reports a pre and post tax adjustment number to back out the tax impact. Alternatively you’ll just adjust your taxes by your cumulative adjustments to ebt multiplied by their marginal tax rate.
Adjustments are different for every company - in my sector they would not adjust tax, interest or other income. Use only the stated non-GAAP line items - it should give you an adjusted EPS number and the bridge down to that.
Don't start plugging numbers, everything should match what's reported in the 10Q/supplement - if there's no adjustment for a line just leave the same
Thanks for your response. One thing I ran into though, is if I keep the interest expense and other incomes line the same, then the Adjusted EBT number I have in my model won't line up exactly with the Adjusted EBT number reported in the company's 8-K (sometimes, there's a decent difference). How do you think I should proceed here? Thanks again for the help
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