Excluding Items

AAA

DEFINITION of 'Excluding Items'

The common practice of leaving certain factors out of an overall calculation to remove the volatility that might otherwise impact is comparability or distort long-term forecasting. Excluding items can often refer to items left out of the calculation of some earnings per share numbers. Such items may include one-time items, extraordinary expenses or income.

INVESTOPEDIA EXPLAINS 'Excluding Items'

Excluding items is also common in the calculation of indices. For example, the Consumer Price Index (CPI) is commonly reported excluding two highly-volatile items - food and energy prices - to obtain the so called "core inflation" index.

RELATED TERMS
  1. Consumer Price Index - CPI

    A measure that examines the weighted average of prices of a basket ...
  2. Index

    A statistical measure of change in an economy or a securities ...
  3. Inflation

    The rate at which the general level of prices for goods and services ...
  4. Deflation

    A general decline in prices, often caused by a reduction in the ...
  5. Diluted Earnings Per Share - Diluted ...

    A performance metric used to gauge the quality of a company's ...
  6. Bureau Of Labor Statistics - BLS

    A government agency that produces economic data that reflects ...
Related Articles
  1. Understanding Supply-Side Economics
    Economics

    Understanding Supply-Side Economics

  2. Introduction To Treasury Inflation-Protected ...
    Bonds & Fixed Income

    Introduction To Treasury Inflation-Protected ...

  3. Why The Consumer Price Index Is Controversial
    Economics

    Why The Consumer Price Index Is Controversial

  4. The Consumer Price Index: A Friend To ...
    Options & Futures

    The Consumer Price Index: A Friend To ...

comments powered by Disqus
Hot Definitions
  1. Debit Spread

    Two options with different market prices that an investor trades on the same underlying security. The higher priced option ...
  2. Odious Debt

    Money borrowed by one country from another country and then misappropriated by national rulers. A nation's debt becomes odious ...
  3. Takeover

    A corporate action where an acquiring company makes a bid for an acquiree. If the target company is publicly traded, the ...
  4. Harvest Strategy

    A strategy in which investment in a particular line of business is reduced or eliminated because the revenue brought in by ...
  5. Stop-Limit Order

    An order placed with a broker that combines the features of stop order with those of a limit order. A stop-limit order will ...
  6. Pareto Principle

    A principle, named after economist Vilfredo Pareto, that specifies an unequal relationship between inputs and outputs. The ...
Trading Center