P&L

P&L

A statement of a company's profit or loss for a given period of time, usually a quarter or a year. Publicly-traded companies are required to issue P&L statements periodically, while privately owned businesses often use them to determine their own financial health. Most simply, they are calculated by taking all income over the period and subtracting all expenses over the same period. However, P&Ls also break down sources of revenue and expenses so investors and owners can see potential opportunities and problem areas. A P&L is also called an earnings report or an income report.