Quality of Earnings (QoE)

Quality of earnings refers to the degree to which a company’s earnings accurately reflect its true operating performance and are sustainable over time. A QoE analysis goes beyond the headline profit figures to examine the consistency, reliability, and sources of earnings, identifying non-recurring items, accounting adjustments, working capital impacts, and other factors that may distort profitability. In M&A, a strong QoE assessment is critical for validating financial health, supporting valuation, and building buyer confidence.

P4i conducts rigorous Quality of Earnings reviews to deliver clear, credible financial insights that underpin successful M&A outcomes.