Relying on proforma earnings statements can have several potential risks or drawbacks. Firstly, these statements are not audited, which means they may not accurately represent a company's financial health. Secondly, they often exclude certain costs, such as restructuring or acquisition costs, which can make a company appear more profitable than it actually is. Lastly, because proforma earnings statements are not standardized, it can be difficult to compare them across different companies.
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