Profit and Loss Statement

Over a million managers and consultants are working together on management issues via 12manage each month...

Description of Profit and Loss Statement. Explanation.

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:

• Net (Operating) Revenue,

• Operating Expenses (Cost of Goods Sold, General and Administrative Expenses, and Selling Expenses),

• Non-Operating Revenues,

• Non-Operating Expenses,

• Irregular Items (Discontinued Operations, Extraordinary Items, Changes in Accounting Principles),

• Net Income, and finally:

• Earnings Per Share.

Microsoft OLE DB Provider for ODBC Drivers error '80040e37'

[Microsoft][ODBC Microsoft Access Driver] The Microsoft Jet database engine cannot find the input table or query 'profit_and_loss_statement'. Make sure it exists and that its name is spelled correctly.

/menu_comments.asp, line 993 Failed to execute script: Http Status Code = 500

Compare with: Return on Net Assets  |  EBIT  |  EBITDA  |  Dupont Model  |  Economic Value Added  |  Corporate Transparency  |  Intangible Assets

Return to Management Hub: Decision-making & Valuation  |  Finance & Investing  |  Knowledge & Intangibles

More on Management  |  Return to Management Dictionary  | 

End of description Profit and Loss Statement. An explanation.