P&L

P&L

Profit and loss statement for a trader.

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P&L

See profit and loss statement.

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P&L

An abbreviation for a profit and loss statement.

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Profit and Loss Statement (P&L)

What Does Profit and Loss Statement (P&L) Mean?

A financial statement that summarizes the revenues, costs, and expenses incurred during a specific period, usually a fiscal quarter or a year. P&L statements provide information that shows the ability of a company to generate profit by increasing revenue and reducing costs; it also is known as a statement of profit and loss, an income statement, or an income and expense statement.

Investopedia explains Profit and Loss Statement (P&L)

A P&L statement follows a general format, beginning with a revenue figure and then subtracting the costs of running the business, including the cost of goods sold, operating expenses, tax expense, and interest expense. The bottom line (literally and figuratively) is net income (profit). The balance sheet, the income statement, and the statement of cash flows are the most important financial statements produced by a company and should be analyzed when one is making an investment decision.

Related Terms:
• Cost of Goods Sold—COGS
• Expense Ratio
• Income Statement
• Profit Margin
• Revenue