profit and loss statement (redirected from Statements of Income)

Profit and Loss Statement

An annual report, and other quarterly reports, a publicly-traded company publishes giving information over a given period of time. The report contains information on the company's financial state, most notably statements on revenue, expenses, and earnings (which is the difference between the two). It is in general less detailed that a stockholder's report but contains much of the same information. A profit and loss statement goes by a number of other names, including income statement, earnings statement, earnings report, and operating statement. See also: Balance Sheet.

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profit and loss statement (P&L)

See income statement.

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profit and loss statement

A semi-itemized list of all revenues and expenses of a person or company over a stated period of time, such as one month, one quarter, or one year.The items on the list are generally broad categories, but the selection of categories is a matter of personal preference for most small businesses.As a general rule,one should design a profit and loss statement so that it gives a snapshot of important revenue categories and the expenses associated with those particular revenues.

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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