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Pro Forma Earnings

In the realm of finance, there exists a term known as "adjusted earnings", which refers to the earnings of a company without factoring in certain expenses. These expenses can range from inventory write downs and severance pay, to depreciation and amortization charges. This is done in order to present a more favorable picture of a company's financial performance. Other names for adjusted earnings include core earnings, ongoing earnings, earnings excluding special items, or operating earnings. It is important for investors to be aware of these adjustments, as they can significantly impact the perceived profitability of a company.
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