profit and loss (P&L) statement

A profit and loss (P&L) statement, also called an income statement, shows a company's financial performance over a specific period. It details revenues (money earned) and expenses (money spent), revealing whether the business made a profit or incurred a loss. By subtracting expenses from revenues, the P&L helps assess profitability and operational efficiency. It's a key tool for understanding how well a company is doing financially, guiding decisions for management, investors, and stakeholders.