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More Active Investors Rely on Non-GAAP vs. GAAP Reporting in Analyzing Stocks

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Oct 16, 2017

On October 16, 2017, Clermont Partners announced the results of a proprietary survey designed to reveal how active (not passive) investors factor GAAP and non-GAAP measures, intangible assets and non-financial metrics into their stock selection process.

The survey was conducted to learn more specifically how the Street uses company-reported and SEC-mandated metrics, and provide insights to help management teams better communicate with investors.

Key findings:

  • Almost three-quarters (74%) of respondents rely on non-GAAP more than GAAP reporting in evaluating a company’s performance. Forty-four percent of respondents believe that non-GAAP measures have become more important over time.
  • Most respondents (90%) will frequently make their own adjustments to a company’s GAAP results based on what they believe is relevant in evaluating performance.
  • Intangible assets are considered important factors in evaluating stocks for nearly two-thirds (64%) of the respondents.

Review the press release and the survey on Clermont Partners' website.

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