pro forma financial statement

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Pro Forma Financial Statement

A financial statement that a company prepares to consider the effects of a potential activity. For example, if a company is considering acquiring another, it may prepare a pro forma financial statement to estimate what effect the acquisition would have on its own financial circumstances. A pro forma financial statement can be part of the risk analysis of a situation. See also: Due diligence.

pro forma financial statement

A financial statement constructed from projected amounts. A firm might construct a pro forma income statement based on projected revenues and costs for the following year. Likewise, a firm may wish to develop a set of pro forma statements to determine the effect of a projected stock buyback.
References in periodicals archive ?
CU's pro forma balance sheet resources relative to operations (62%) and debt (154%) compare favorably to 'AA' medians.
The company will be named Talos Energy and is expected to trade on the New York Stock Exchange under the new ticker symbol "TALO." Highlights of the combined company will include: Pro forma estimated 2017 average daily production of approximately 47,000 barrels of oil equivalent; Pro forma proved reserves of 136M barrels of oil equivalent as of June 30, 2017 based on SEC pricing, which are 69% oil and 74% located in the Deepwater Gulf of Mexico; Two recent discoveries, Tornado II and Rampart, provide near-term opportunities for growth; Long-term growth profile, underscored by the historic, world-class Zama oil discovery in the shallow waters of Mexico; and Strong pro forma balance sheet and credit profile, highlighted by low leverage and ample liquidity.
Pro forma balance sheet after additional QE and Term Funding Scheme (bn [pounds sterling]) Assets QE gilts 435.0# Term Funding Scheme 100.0# Corporate bonds 10.0# Other assets 30.8 Total 575.8 Liabilities, capital and reserves Deposits 565.5 Other liabilities 5.7 Total liabilities 571.2 Capital and reserves 4.6 Total 575.8 Note: Leverage ratio is 0.8 per cent; 95 per cent of assets (shown in italics) are indemnified by the Treasury.
The unaudited consolidated pro forma balance sheet of the Global Group as of 30 June 2014 included total assets of RMB 4.65bn and total liabilities of RMB 2.11bn.
M&T's pro forma balance sheet will have then increased by approximately USD 28 b.
This case was inspired by the desire to have an easy to follow format for a managerial budgeting problem that started with the sales budget and ended with a pro forma balance sheet. Textbooks usually include such problems but most are very time consuming and so long that the completion of them during a normal class period is nearly impossible.
This month we'll begin to put together the data we will use for the calculations needed to produce a Pro Forma Balance Sheet. This gives us a perfect opportunity to look at the differences between data and information and understand how Excel and Access handle them differently.
Upon completing due diligence and deeming a venture to be worthy of a capital commitment, the investor reviews the company's anticipated revenue projections to identify a period in the future (beginning at 30 or 36 months out) at which the company's cash flow model and pro forma balance sheet suggest that it would be able to return the investor's initial capital contribution and an accrued dividend.
* prepares complete key business ratios, pro forma balance sheet, annual budgets, job-costing multipliers and Z-score analyses;
For example, in a December 13, 1996 letter to the USDA, Diehl McCarthy stated that Crowley, Nemetz, and Johnston would each contribute to NCH the precise amount which they subsequently borrowed from the Bank, and that each would "lend these funds to [NCH]" and that "NCH's pro forma balance sheet will indicate that the funds are converted to stock." (OCC Exh.
The plan should also include a current and pro forma balance sheet, income statement find cash-flow projections.
If the impact of the change is significant, consideration should be given to presenting a pro forma balance sheet giving effect to the change as if it had occurred on the balance sheet date.