Quality of Earnings (QoE) Report

Definition

A detailed financial analysis, typically prepared by an accounting firm on behalf of a buyer or lender, that assesses the sustainability, accuracy, and adjustability of a target company's reported earnings. A QoE report examines revenue recognition policies, non-recurring items, related-party transactions, working capital normalisation, pro forma adjustments, and the bridge from reported EBITDA to adjusted EBITDA. It is a standard component of buy-side financial due diligence in M&A transactions.