Profit and Loss (P&L) Statement 

The Profit and Loss (P&L) Statement, also known as an Income Statement, is a core financial report that summarizes a company’s revenues, expenses, and profits or losses over a specific period (monthly, quarterly, annually). It reveals how effectively a business generates revenue relative to its operating and financial costs. 

Key components include: 

• Revenue (Sales) 

• Cost of Goods Sold (COGS) 

• Gross Profit 

• Operating Expenses (OPEX) 

• Operating Profit (EBIT) 

• Net Profit (Net Income) 

A well-maintained P&L provides critical insights into business performance trends, cost management, and profitability, supporting financial planning and investment decisions.