QUALITY OF EARNINGS Definition

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QUALITY OF EARNINGS is the increased earnings due to increased sales and cost controls, as compared to artificial profits created by inflation of inventory or other asset prices.

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CPLTD is Current Portion of Long-Term Debt.

SHAREHOLDER LOANS include any loans between a corporation and any of its shareholders. Loans from shareholders are normally carried as long-term debt, but the reality is such loans should be counted as equity (they are not) because they rarely are paid back to the shareholder.

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