Primary navigation:

QFINANCE Quick Links
QFINANCE Topics
QFINANCE Reference
Add the QFINANCE search widget to your website

Home > QFINANCE Dictionary > Definition of pro-forma

Definition of

pro-forma

General Management

preliminary document issued before final version a document issued before all relevant details are known, usually followed by a final version

pro-forma - Related Articles

  • Quantifying Corporate Financial Risk

    Best Practice

    Once all the drivers of the income statement have been modeled, they are compiled to the income statement in the same way that a pro-forma income statement would normally be generated. For example, suppose a refinery in Brazil buys crude oil in dollars, sells products in reais, shuts down production when it is not profitable to produce, and runs the risk of operational failures according to some statistical model
    By David Shimko

  • Earnings per Share

    Calculations

    For example, “pro-forma earnings” tend to exclude more expenses and income used to calculate “reported earnings.” Pro-forma advocates insist that these earnings eliminate all distortions and present “true” earnings that allow pure apples-with-apples comparisons with preceding periods. However

  • Managing Capital Budgets for Small and Medium-Sized Companies

    Best Practice

    Stress testing is a best practice for risk assessment. Identify possible problems, such as a recession or loss of a major customer. Prepare pro forma financial statements for the company in these unfortunate scenarios, with and without the proposed capital investment. Although income is important
    By Neil Seitz

  • Using Financial Analysis to Evaluate Strategy

    Best Practice

    comparable companies whose stock is publicly traded. Make a judgment about whether the business being analyzed deserves a rating below, equal to, or above that of the average of comparable companies. Decide on an earnings multiple and calculate pro forma market value accordingly. Take note of the current
    By David Sadtler

More

Definitions of ’pro-forma’ and meaning of ’pro-forma’ are from the book publication, QFINANCE – The Ultimate Resource, © 2009 Bloomsbury Information Ltd. Find definitions for ’pro-forma’ and other financial terms with our online QFINANCE Financial Dictionary.

Back to top

Related

Most Viewed

Recommended

Latest

 
QFINANCE www.qfinance.com