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CYCC

June 21, 20134Comments

Income and Loss from Discontinued Operations – NOPAT Adjustment

We remove all income and losses from discontinued operations in calculating operating profit because this income/loss will not recur in the future, and we are looking for the true profitability of the continuing and core operations of a company.
by David Trainer, Founder & CEO
June 17, 20130Comments

Non-Operating Income Hidden in Operating Earnings – NOPAT Adjustment

Non-operating items in operating income are unusual gains that don’t appear on the income statement because they are bundled in other line items. Without careful footnotes research, investors would never know that these non-recurring income items distort GAAP numbers by artificially raising operating earnings.
by David Trainer, Founder & CEO

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