A Profit and Loss (P&L) statement, also called an income statement, sums up a company's revenues, costs, and expenses over a certain period, like a quarter or a year. It reveals whether the business made a profit or took a loss.
Together with balance sheets and cash flow statements, the P&L is one of the top three financial reports public companies release every quarter and year.
The P&L statement offers a quick, clear snapshot of a company’s financial health over time. Breaking down revenues and expenses shows how well the business generates profit and manages costs. A consistent look at P&L reports can reveal important trends, showcase how well the company is hitting its financial targets, and identify warning signs early—keeping the business stable and primed for growth.
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