Ever wonder, like I did until today, what Pro-forma earning are?
What to do when you don’t understand something? Tap into Google.
I searched, and found this article:
It’s a good down-to-earth article that should help you understand a little more about Pro-forma Earnings versus Net-Income, as reported using GAAP methods.
I’m still not knowledgeable enought to know a damn thing about investing, but this at least helps me know more about this subject, so I can carry on a conversation about whether or not a company is profitable. This quote is priceless:
“At Investopedia, we like to call pro forma the ‘everything-but-the-bad-stuff earnings’.”
Good advice in that article. Go read it, if you’re still clueless like I am/was.
