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Pro Forma Earnings

Stock market Pro formaProbability Density Function

Pro Forma Earnings
Earnings declared without regard to real expenses.
Property, Plant and Equipment (PPE) ...

 


Pro Forma Earnings: (as if) earnings without considering certain expenses such as inventory write downs, severance pay, depreciation and amortization charges, ...

During the dot com bubble companies promoted their stock by emphasising either EBITDA or pro forma earnings in their financial reports, and explaining away the (often poor) "income" number.

Others include pro forma earnings, EBITDA, free cash flow, and core earnings. Each method produces different results because of the data that is included in the calculation.

See also: Balance Sheet, Earnings, Debt, Coverage, Asset

Stock market Pro formaProbability Density Function

 
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