Quick Definition

A Profit and Loss Statement (P&L) is a financial report that summarizes the revenues, costs, and expenses incurred during a specific period, typically a fiscal quarter or year, to show a company's net earnings or losses.

Examples

• 1A small business owner reviews their quarterly P&L to assess if revenue from sales is covering the operational costs and providing a profit.
• 2A startup presents its annual P&L to potential investors to demonstrate financial performance and growth potential.
• 3A retail company uses monthly P&L statements to adjust their budgeting and marketing strategies based on which products are most profitable.

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