What Is a P&L Statement, and How Is It Presented?

A P&L statement, short for profit and loss, is a financial statement that summarizes a company's revenues, costs and expenses during a specific period. That period is typically a fiscal quarter or year.

What is the purpose of a P&L?

It gives an overview of a company's ability to generate profits by increasing revenue, reducing costs, or both.

How does a P&L start?

It starts with the revenue section, which includes sales, service fees and any other income generated.

What period does it cover?

A specific period, typically a fiscal quarter or year.

Quick answers

What does P&L stand for? Profit and loss.

What does it summarize? Revenues, costs and expenses.

Where does it begin? With revenue.