Sign Up For The Next
New Constructs Webinar


Non-Operating Expenses Hidden in Operating Earnings – NOPAT Adjustment

Wednesday, June 12th, 2013 ENOPTIO

Non-operating expenses are unusual charges 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 expenses distort GAAP numbers by lowering operating earnings.

Read More

Red Flag Report: Hidden Expenses/Income: What You Don’t Know Can Cost You

Tuesday, March 1st, 2011 dreamstimefree_3430_keepOutBuoyInSmallPond

Most investors are not aware that companies hide one-time and unusual charges and income inside normal, operating line items (e.g. “Cost of sales”) on their income statement. These hidden items can mislead investors by artificially decreasing/increasing GAAP earnings. We found 13,000+ one-time items buried in normal line items like “Cost of Sales” by studying the Footnotes of 10-K filings from 1998 thru 2/15/2011. This research revealed that companies have concealed over $41 billion in one-time items.

Read More