Definition Profit and Loss Statement. Description.
The Profit and Loss Statement of a company indicates
how its net revenues (money received from the sale of its products and services)
were transformed into net income (the result after all expenses have been
accounted for).
It helps investors and creditors to evaluate the past performance
of the company, to predict its future performance and to assess the risk of
achieving future cash flows.
Synonyms are: Income Statement and P&L.
The P&L lists the different types of revenues that the company
has earned and the expenses that it incurred. Typical categories on the Income
Statement are:
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Net (Operating) Revenue,
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Operating Expenses (Cost of Goods Sold,
General and Administrative Expenses, and
Selling Expenses),
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Non-Operating Revenues,
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Non-Operating Expenses,
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Irregular Items (Discontinued Operations, Extraordinary
Items, Changes in Accounting Principles),
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Net Income, and finally:
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Earnings Per Share.
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Quotes on P&L Statements. Quotations
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Profit and Loss Statements Special Interest Group
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Compare with: Return on Net Assets
| EBIT |
EBITDA |
Dupont Model |
Economic Value Added |
Corporate Transparency
| Intangible Assets
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Profit and Loss Statements Sponsor
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Special Interest Group Leader
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