Acronyms Dictionary
P&L
Definition
Profit and Loss. A financial statement summarizing revenues, costs, and expenses.
Deep Dive
The P&L statement (also known as an Income Statement) provides a summary of a company's financial performance over a specific period (monthly, quarterly, or annually). It shows how revenue is transformed into net income by subtracting all costs and expenses.
Examples & Use Cases
- 1A CEO reviewing the monthly P&L to identify areas where costs are exceeding the budget
- 2Presenting a three-year historical P&L to potential investors during a fundraising round
- 3Using P&L data to calculate a company's net profit margin
Related Terms
Balance SheetEBITDARevenue