Pro Forma

Definitions

1. Adjusted or projected financial reporting that shows what numbers would look like under specified assumptions, such as after an acquisition or excluding certain items. Pro forma figures can be useful, but only if the adjustments are credible and transparent.

   In plain English: A financial view adjusted or projected based on stated assumptions.

   Example: "The pro forma model assumed the integration savings would actually materialize within two quarters."

Related Terms

• Cost of Goods Sold
• Cost of Revenue
• G&A
• Guidance
• Base Case
• Operating Expense
• OpEx
• P&L
• Rolling Forecast
• Run Rate