Profit & Loss Statement (P&L)
A financial report summarising revenue, costs, and profit over a specific period.
A Profit & Loss Statement — also called an income statement — shows how much money a business earned (revenue), how much it spent (expenses), and what was left over (profit or loss) during a specific period, typically a month, quarter, or year.
The P&L is one of the three core financial statements, alongside the balance sheet and cash flow statement. It answers the most fundamental business question: are we making money?
A well-structured P&L breaks revenue and expenses into meaningful categories — gross profit, operating expenses, EBITDA, and net income — so that management, investors, and lenders can assess the quality and sustainability of earnings, not just the total.
For growing companies, the P&L is also the primary document used in board reporting, investor updates, and financial modelling. Errors or inconsistencies in P&L construction are among the most common findings in financial due diligence.
Related Terms
A snapshot of a company's assets, liabilities, and equity at a specific point in time.
A report showing how cash moves in and out of a business across operating, investing, and financing activities.
Another name for the Profit & Loss Statement — a report of revenue, expenses, and profit over a period.
The percentage of revenue remaining after subtracting cost of goods sold — a measure of pricing power.
Earnings Before Interest, Taxes, Depreciation, and Amortization — a measure of operating profitability.
Further Reading
Not sure what financial reports your Malaysian business needs? This simple guide explains P&L, balance sheets, and cash flow statements in plain language.
A practical guide to the financial KPIs that give CFOs real-time visibility into business health across global operations.