Business Pitch Dictionary by pitch.dog
Investor diligence & data rooms · Working

Quality of earnings

Also called: QoE

ELI5

Check whether reported profit is real and repeatable.

Used in conversation

“The quality-of-earnings review removed one-time revenue.”

Definition

Analysis of how sustainable, recurring and cash-convertible reported earnings are.

Here “Quality of earnings” means: Analysis of how sustainable, recurring and cash-convertible reported earnings are.

Pitch context

You will see “Quality of earnings” in fundraising decks, data rooms, term sheets and investor conversations when the discussion reaches investor diligence & data rooms.

Why it matters: In investor diligence & data rooms, a loose definition can change rights, obligations, approval, disclosure or enforceability.

Caution

Meaning, enforceability and required process vary by jurisdiction and agreement; this definition is not legal advice.

Connected terms

  • Earnings qualityThe search label “quality of earnings” can route to both entries.
Sources & evidence · 7

Direct term-level sources and supporting source families.