Reported 5 months ago
The article discusses how large US companies within the S&P 500 are enhancing their adjusted earnings per share by excluding certain expenses from their net income, such as litigation costs and the amortization of intangible assets. A study by Calcbench Inc. and Suffolk University found that in 2023, about 260 S&P 500 companies made combined adjustments totaling nearly $182 billion, leading to an average adjusted net income of around $3.1 billion per company. The article highlights the ongoing debate regarding the use of non-GAAP measures by companies and the scrutiny from regulators, including the Securities and Exchange Commission, on such practices.
Source: YAHOO