Non-GAAP Addback Battlecards
Use quick battlecards to evaluate common adjusted EBITDA addback claims.
Management says: 'This is a one-time cost.' The same category appeared in prior years. Your line Which portion disappears from the forecast, and which portion is part of the operating plan? Accepting the one-time label without history or forecast testing. It separates genuine non-recurring cost from recurring economics. Management says: 'Transformation costs should not count against EBITDA.' Transformation is required to deliver the growth case. If the cost is required to achieve the plan, should normalized EBITDA include the recurring cash portion? Letting a strategic label remove the cost of the strategy. It ties the adjustment to sustainable cash economics.…
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