🕷️ Crawler Inspector

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Raw Queries and Responses

1. Shard Calculation

Query:

Response:

Calculated Shard: 148 (from laksa018)

2. Crawled Status Check

Query:

curl -X POST \
  'http://laksa148.int.ahrefs:8124/' \
  -H 'Content-Type: text/plain' \
  -H 'X-ClickHouse-Database: crawler3' \
  -H 'Authorization: Basic YXBpOg==' \
  -d 'SELECT getAhrefsURLFromUnparsed(src_unparsed) AS found_url, ifNull(toUnixTimestamp(download_stamp), 0) AS crawl_time, ifNull(toUnixTimestamp(props_url_first_seen), 0) AS first_indexed_time, download_http_code AS http_code, src_unparsed AS src_unparsed, src_root_hash AS src_root_hash, history_drop_reason AS history_drop_reason, meta_title AS meta_title, meta_descriptions AS meta_descriptions, attrs_boilerpipe_text AS attrs_boilerpipe_text, attrs_markdown AS attrs_markdown, attrs_readable_markdown AS attrs_readable_markdown, meta_canonical AS meta_canonical FROM crawler3.page_info_local FINAL PREWHERE (src_root_hash, src_unparsed) IN ((getAhrefsRootHashFromUnparsed(getAhrefsUnparsedNoserviceFromURL(\'https://www.investopedia.com/ask/answers/122314/whats-example-pl-statement.asp\')), getAhrefsUnparsedNoserviceFromURL(\'https://www.investopedia.com/ask/answers/122314/whats-example-pl-statement.asp\'))) FORMAT JSONEachRow'

Response:

{"found_url":"https:\/\/www.investopedia.com\/ask\/answers\/122314\/whats-example-pl-statement.asp","crawl_time":1769626070,"first_indexed_time":1511996730,"http_code":200,"src_unparsed":"com,investopedia!www,\/ask\/answers\/122314\/whats-example-pl-statement.asp s443","src_root_hash":"7273739457760125548","history_drop_reason":null,"meta_title":"What Is an Example of a Profit and Loss (P&L) Statement?","meta_descriptions":["Learn about profit and loss statements and how they help investors evaluate a company’s financial condition and prospects for future growth."],"attrs_boilerpipe_text":"A company’s statement of income is often called its profit and loss (P&L) statement. It lists revenues, expenses, and net profit for the period covered. There are typically quarterly and annual P&Ls, but some companies might publish monthly P&Ls.\nPublic companies produce\nP&L statements\nto meet legal reporting requirements and inform investors. The P&L is carefully reviewed by market analysts, investors, and creditors to evaluate a company’s revenues, expenses, and profitability.\nKey Takeaways\nA P&L statement shows a company’s revenues and expenses related to running the business, such as rent, cost of goods sold (COGS), freight, and payroll.\nEach entry on a P&L statement provides insight into how much money a company made and spent.\nP&L statements help companies gauge how well they’re operating and benchmark current performance relative to future projections.\nP&L statements provide financial information that can be compared to that of rivals in the same industry.\nInvestors and lenders use P&L statements to inform their investing or lending decisions.\nWhat Do Profit and Loss (P&L) Statements Show?\nA P&L statement contains details about a company’s financial circumstances. It generally has the following sections:\nRevenues\n: The total amount of income from the sale of goods or services associated with the company’s primary operations.\nExpenses\n: Costs deducted from revenue, such as the\ncost of goods sold (COGS)\n, wages, rent, marketing, administration costs, utilities, interest expenses, and\ndepreciation\n.\nGains\n: Any gains during the period, such as selling unused equipment.\nLosses\n: Any losses incurred in the period.\nNet Income\n: While not necessarily a section on its own, this line item shows what was earned after accounting for everything. It is also known as the\nbottom line\n.\nDue to how comprehensive it can be, the P&L statement paints a clear picture of how much money a company makes and spends. It also highlights whether the company was profitable or suffered a loss.\nFast Fact\nTo ensure a proper understanding of profitability, accountants use accrual accounting to prepare the P&L statement.\nAccrual accounting\nrecognizes revenue and expenses when they occur rather than when money is received or paid.\nWhy Profit and Loss (P&L) Statements Are Public\nP&L statements are made available to the public for a variety of reasons. First,\npublic companies\nin the United States are required to file their financial statements with the\nSecurities and Exchange Commission (SEC)\n. The inner financial workings of a company are of great interest to numerous people, including accountants, economists, and investors.\nEven business owners need a comprehensive understanding of a company’s financial events and results. The P&L and other\nfinancial statements\ncan help them identify unnecessary expenditures, opportunities to increase revenue, and other ways to improve performance.\nFor all of these professionals, assessing a company’s financial strength means taking a detailed look at \ntotal revenue\n, expenditures, the amount of\ndebt\nor\nleverage\n, additional investments, secondary operations, and tax burdens.\nFinancial statements, including the P&L, can help businesses understand current performance relative to projections and create realistic forecasts. They can also help business owners and investors compare a business’s performance against competitors.\nHow Investors Use Profit and Loss (P&L) Statements\nInvestors and lenders use data from P&L statements to determine a company’s\nprofitability\nand \nrisk level\n. For example, companies must provide evidence of their financial standing and ability to make consistent payments to apply for loans.\nIf the P&L statement reflects that a company does not generate enough \noperating income\nto adequately cover current loan payments, banks are less likely to loan additional funds. Sometimes, a downturn in income could signal loan \ndefault\n.\nIf you’re an investor making important investment decisions, be sure to compare the P&L statements of companies that are similar in size and within the same\nindustry or sector\n. This gives you an apples-to-apples comparison. Comparing the financial statements of a large\npharmaceutical company\nwith those of a small energy company doesn’t make sense, as they have different factors that play into their revenues and expenses.\nFast Fact\nProfit and loss statements may commonly be referred to as any of the following:\nStatement of profit and loss\nStatement of operations\nStatement of financial results or income\nEarnings statement\nExpense statement\nIncome statement\nExample of a Profit and Loss (P&L) Statement\nSome companies publish their P&L statements under that name. Others may use different terms to describe the same thing. Consider Pressure BioSciences (\nPBIO\n), which calls its P&L a statement of operations.\nThe image below shows how the P&L statement or, in this case, the statement of operations is broken down:\nThis particular statement is broken into three sections:\nRevenue\nCosts and Expenses\nOther (Expense) Income\nIt then lists net losses and shareholder information at the bottom. The total value under the expense category is subtracted from the total value of the company’s revenue, resulting in an\noperating profit\nif the result is positive or an\noperating loss\nif it’s negative.\nWhat Is the Difference Between a P&L Statement and a Cash Flow Statement?\nA P&L or income statement shows readers the revenue and total expenses for a certain period. A cash flow statement, on the other hand, details a company’s cash inflows and outflows during that period. This statement starts with the figure for net profit, which it gets from the P&L statement.\nDoes Every Company Have to Prepare a P&L Statement?\nNo. Only public companies are legally required to prepare the P&L and other financial statements and file them with the SEC annually and quarterly. Companies not required to prepare financial statements such as the P&L should consider doing so because they provide business owners with a systematic way to obtain a clear view of their company’s financial circumstances.\nWhy Does the P&L Statement Matter?\nIt matters because it shows investors, analysts, and business owners whether a company is making or losing money. A careful review of the P&L also can stimulate ideas for cutting expenses and increasing revenue.\nThe Bottom Line\nA P&L statement shows investors and other interested parties the amount of a company’s profit or loss. Revenue and expenses are shown when they occur, not when the money actually moves into or out of the company’s bank account. The P&L statement is often the most sought-after financial document because it shows whether a company is profitable.","attrs_markdown":"\n\n[Skip to content](https:\/\/www.investopedia.com\/ask\/answers\/122314\/whats-example-pl-statement.asp#main)\n\n[Investopedia](https:\/\/www.investopedia.com\/)\n\n[Live](https:\/\/www.investopedia.com\/dow-jones-today-01282026-11894050)\n\n- Please fill out this field.\n- [Newsletters](https:\/\/www.investopedia.com\/ask\/answers\/122314\/whats-example-pl-statement.asp)\n\nPlease fill out this field.\n\n- [News](https:\/\/www.investopedia.com\/news-4427706)\n  News\n  \n  - [Markets](https:\/\/www.investopedia.com\/markets-news-4427704)\n  - [Companies](https:\/\/www.investopedia.com\/company-news-4427705)\n  - [Earnings](https:\/\/www.investopedia.com\/earnings-reports-5218419)\n  - [CD Rates](https:\/\/www.investopedia.com\/certificates-deposit-news-7111770)\n  - [Mortgage Rates](https:\/\/www.investopedia.com\/mortgage-rates-5184598)\n  - [Economy](https:\/\/www.investopedia.com\/economic-news-5218422)\n  - 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[Best Life Insurance](https:\/\/www.investopedia.com\/the-best-life-insurance-companies-8763666)\n  - [Best Mortgage Rates](https:\/\/www.investopedia.com\/mortgage-rates-5094943)\n  - [Best Robo-Advisors](https:\/\/www.investopedia.com\/the-best-robo-advisors-8764849)\n  - [Best Personal Loans](https:\/\/www.investopedia.com\/the-best-personal-loans-8761582)\n  - [Best Debt Relief Companies](https:\/\/www.investopedia.com\/the-best-debt-relief-companies-8763179)\n  - [View All](https:\/\/www.investopedia.com\/financial-product-reviews-7110783)\n\n- Top Stories\n- [Test To Figure Out If You're House Poor](https:\/\/www.investopedia.com\/try-these-simple-tests-to-figure-out-if-your-home-is-affordable-or-if-you-re-house-poor-11893178)\n- [Smart Ways to Invest for a Newborn](https:\/\/www.investopedia.com\/5-smart-ways-to-invest-for-a-newborn-11892246)\n- [Average Social Security Benefit](https:\/\/www.investopedia.com\/average-social-security-benefit-for-retirees-in-2026-revealed-heres-what-to-expect-11892988)\n- [Top Country for Retirement](https:\/\/www.investopedia.com\/top-country-for-retirement-revealed-and-its-mediterranean-lifestyle-might-improve-your-longevity-11892954)\n\nTable of Contents\n\nExpand\n\nTable of Contents\n\n- [What Do P\\&L Statements Show?](https:\/\/www.investopedia.com\/ask\/answers\/122314\/whats-example-pl-statement.asp#toc-what-do-profit-and-loss-pl-statements-show)\n- [Why P\\&L Statements Are Public](https:\/\/www.investopedia.com\/ask\/answers\/122314\/whats-example-pl-statement.asp#toc-why-profit-and-loss-pl-statements-are-public)\n- [How Investors Use P\\&L Statements](https:\/\/www.investopedia.com\/ask\/answers\/122314\/whats-example-pl-statement.asp#toc-how-investors-use-profit-and-loss-pl-statements)\n- [Example](https:\/\/www.investopedia.com\/ask\/answers\/122314\/whats-example-pl-statement.asp#toc-example-of-a-profit-and-loss-pl-statement)\n- [FAQs](https:\/\/www.investopedia.com\/ask\/answers\/122314\/whats-example-pl-statement.asp#toc-what-is-the-difference-between-a-pl-statement-and-a-cash-flow-statement)\n- [The Bottom Line](https:\/\/www.investopedia.com\/ask\/answers\/122314\/whats-example-pl-statement.asp#toc-the-bottom-line)\n\n# What Is an Example of a Profit and Loss (P\\&L) Statement?\nBy\n\n[J.B. Maverick](https:\/\/www.investopedia.com\/contributors\/53889\/)\n\n![]()\n\n![](https:\/\/www.investopedia.com\/thmb\/kS3VBrdzs7YL38q7IpaQ75GBXPk=\/200x200\/filters:no_upscale\\(\\):max_bytes\\(150000\\):strip_icc\\(\\)\/picture-53889-1440688003-5bfc2a8846e0fb0083c04dc5.jpg)\n\n[Full Bio](https:\/\/www.investopedia.com\/contributors\/53889\/)\n\nJ.B. Maverick is an active trader, commodity futures broker, and stock market analyst 17+ years of experience, in addition to 10+ years of experience as a finance writer and book editor.\n\nLearn about our  [editorial policies](https:\/\/www.investopedia.com\/legal-4768893#editorial-policy)\n\nUpdated April 13, 2025\n\nReviewed by\n\n[Amy Drury](https:\/\/www.investopedia.com\/amy-drury-4776200)\n\n![Amy Drury]()\n\n![Amy Drury](https:\/\/www.investopedia.com\/thmb\/gDmuBWBr-D62xocOgmZOiyPfFU8=\/200x200\/filters:no_upscale\\(\\):max_bytes\\(150000\\):strip_icc\\(\\)\/AmyImage-AmyDrury-d6b6143c6d5c49a0add2201e25969457.jpg)\n\nReviewed by Amy Drury\n\n[Full Bio](https:\/\/www.investopedia.com\/amy-drury-4776200)\n\nAmy is an ACA and the CEO and founder of OnPoint Learning, a financial training company delivering training to financial professionals. She has nearly two decades of experience in the financial industry and as a financial instructor for industry professionals and individuals.\n\nLearn about our  [Financial Review Board](https:\/\/www.investopedia.com\/investopedia-financial-review-board-5076269)\n\nFact checked by\n\n[Suzanne Kvilhaug](https:\/\/www.investopedia.com\/suzanne-kvilhaug-5197828)\n\n![Suzanne Kvilhaug]()\n\n![Suzanne Kvilhaug](https:\/\/www.investopedia.com\/thmb\/znbFHeELuyfkeore2XU_GHw2QaM=\/200x200\/filters:no_upscale\\(\\):max_bytes\\(150000\\):strip_icc\\(\\)\/SuzannesHeadshot-3dcd99dc3f2e405e8bd37271894491ac.jpg)\n\nFact checked by Suzanne Kvilhaug\n\n[Full Bio](https:\/\/www.investopedia.com\/suzanne-kvilhaug-5197828)\n\nSuzanne is a content marketer, writer, and fact-checker. She holds a Bachelor of Science in Finance degree from Bridgewater State University and helps develop content strategies.\n\nLearn about our  [editorial policies](https:\/\/www.investopedia.com\/legal-4768893#editorial-policy)\n\n![Image](https:\/\/www.investopedia.com\/thmb\/wJnEg57WmvtwSXxQ7PDRrkmXzkM=\/1500x0\/filters:no_upscale\\(\\):max_bytes\\(150000\\):strip_icc\\(\\)\/tax_shutterstock_181463525-5bfc318bc9e77c0026b616d3-2edc54da6f57439a8cfb452f6bbc8edd.jpg)\n\n![Image](https:\/\/www.investopedia.com\/thmb\/wJnEg57WmvtwSXxQ7PDRrkmXzkM=\/1500x0\/filters:no_upscale\\(\\):max_bytes\\(150000\\):strip_icc\\(\\)\/tax_shutterstock_181463525-5bfc318bc9e77c0026b616d3-2edc54da6f57439a8cfb452f6bbc8edd.jpg)\n\nShutterstock\n\nClose\n\nA company’s statement of income is often called its profit and loss (P\\&L) statement. It lists revenues, expenses, and net profit for the period covered. There are typically quarterly and annual P\\&Ls, but some companies might publish monthly P\\&Ls.\n\nPublic companies produce [P\\&L statements](https:\/\/www.investopedia.com\/terms\/p\/plstatement.asp) to meet legal reporting requirements and inform investors. The P\\&L is carefully reviewed by market analysts, investors, and creditors to evaluate a company’s revenues, expenses, and profitability.\n\n### Key Takeaways\n- A P\\&L statement shows a company’s revenues and expenses related to running the business, such as rent, cost of goods sold (COGS), freight, and payroll.\n- Each entry on a P\\&L statement provides insight into how much money a company made and spent.\n- P\\&L statements help companies gauge how well they’re operating and benchmark current performance relative to future projections.\n- P\\&L statements provide financial information that can be compared to that of rivals in the same industry.\n- Investors and lenders use P\\&L statements to inform their investing or lending decisions.\n## What Do Profit and Loss (P\\&L) Statements Show?\nA P\\&L statement contains details about a company’s financial circumstances. It generally has the following sections:\n\n- [**Revenues**](https:\/\/www.investopedia.com\/terms\/r\/revenue.asp): The total amount of income from the sale of goods or services associated with the company’s primary operations.\n- **Expenses**: Costs deducted from revenue, such as the [cost of goods sold (COGS)](https:\/\/www.investopedia.com\/terms\/c\/cogs.asp), wages, rent, marketing, administration costs, utilities, interest expenses, and [depreciation](https:\/\/www.investopedia.com\/terms\/d\/depreciation.asp).\n- **Gains**: Any gains during the period, such as selling unused equipment.\n- **Losses**: Any losses incurred in the period.\n- [**Net Income**](https:\/\/www.investopedia.com\/ask\/answers\/122414\/net-income-same-profit.asp): While not necessarily a section on its own, this line item shows what was earned after accounting for everything. It is also known as the [bottom line](https:\/\/www.investopedia.com\/terms\/b\/bottomline.asp).\n\nDue to how comprehensive it can be, the P\\&L statement paints a clear picture of how much money a company makes and spends. It also highlights whether the company was profitable or suffered a loss.\n\n### Fast Fact\nTo ensure a proper understanding of profitability, accountants use accrual accounting to prepare the P\\&L statement. [Accrual accounting](https:\/\/www.investopedia.com\/terms\/a\/accrualaccounting.asp) recognizes revenue and expenses when they occur rather than when money is received or paid.\n## Why Profit and Loss (P\\&L) Statements Are Public\nP\\&L statements are made available to the public for a variety of reasons. First, [public companies](https:\/\/www.investopedia.com\/terms\/p\/publiccompany.asp) in the United States are required to file their financial statements with the [Securities and Exchange Commission (SEC)](https:\/\/www.investopedia.com\/terms\/s\/sec.asp). The inner financial workings of a company are of great interest to numerous people, including accountants, economists, and investors.\n\nEven business owners need a comprehensive understanding of a company’s financial events and results. The P\\&L and other [financial statements](https:\/\/www.investopedia.com\/terms\/c\/consolidatedfinancialstatement.asp) can help them identify unnecessary expenditures, opportunities to increase revenue, and other ways to improve performance.\n\nFor all of these professionals, assessing a company’s financial strength means taking a detailed look at [total revenue](https:\/\/www.investopedia.com\/terms\/t\/total_revenue_test.asp), expenditures, the amount of [debt](https:\/\/www.investopedia.com\/terms\/d\/debt.asp) or [leverage](https:\/\/www.investopedia.com\/terms\/l\/leverage.asp), additional investments, secondary operations, and tax burdens.\n\nFinancial statements, including the P\\&L, can help businesses understand current performance relative to projections and create realistic forecasts. They can also help business owners and investors compare a business’s performance against competitors.\n\n## How Investors Use Profit and Loss (P\\&L) Statements\nInvestors and lenders use data from P\\&L statements to determine a company’s [profitability](https:\/\/www.investopedia.com\/ask\/answers\/012715\/what-difference-between-profitability-and-profit.asp) and [risk level](https:\/\/www.investopedia.com\/terms\/r\/risktolerance.asp). For example, companies must provide evidence of their financial standing and ability to make consistent payments to apply for loans.\n\nIf the P\\&L statement reflects that a company does not generate enough [operating income](https:\/\/www.investopedia.com\/terms\/o\/operatingincome.asp) to adequately cover current loan payments, banks are less likely to loan additional funds. Sometimes, a downturn in income could signal loan [default](https:\/\/www.investopedia.com\/terms\/d\/default2.asp).\n\nIf you’re an investor making important investment decisions, be sure to compare the P\\&L statements of companies that are similar in size and within the same [industry or sector](https:\/\/www.investopedia.com\/ask\/answers\/05\/industrysector.asp). This gives you an apples-to-apples comparison. Comparing the financial statements of a large [pharmaceutical company](https:\/\/www.investopedia.com\/articles\/06\/drugmarket.asp) with those of a small energy company doesn’t make sense, as they have different factors that play into their revenues and expenses.\n\n### Fast Fact\nProfit and loss statements may commonly be referred to as any of the following:\n\n- Statement of profit and loss\n- Statement of operations\n- Statement of financial results or income\n- Earnings statement\n- Expense statement\n- Income statement\n## Example of a Profit and Loss (P\\&L) Statement\nSome companies publish their P\\&L statements under that name. Others may use different terms to describe the same thing. Consider Pressure BioSciences ([PBIO](https:\/\/www.investopedia.com\/markets\/quote?tvwidgetsymbol=PBIO)), which calls its P\\&L a statement of operations.\n\nThe image below shows how the P\\&L statement or, in this case, the statement of operations is broken down:\n\n![Pressure BioSciences income statement]()\n\n![Pressure BioSciences income statement](https:\/\/www.investopedia.com\/thmb\/zst2c2HxugOyE25xG4o-B8Hk_Ws=\/1500x0\/filters:no_upscale\\(\\):max_bytes\\(150000\\):strip_icc\\(\\)\/PressureBioSciences10Q2024-e427b171bc39485ca84a18d28cb46c91.jpg)\n\nThis particular statement is broken into three sections:\n\n- Revenue\n- Costs and Expenses\n- Other (Expense) Income\n\nIt then lists net losses and shareholder information at the bottom. The total value under the expense category is subtracted from the total value of the company’s revenue, resulting in an [operating profit](https:\/\/www.investopedia.com\/terms\/o\/operating_profit.asp) if the result is positive or an [operating loss](https:\/\/www.investopedia.com\/terms\/o\/operating-loss.asp) if it’s negative.\n\n## What Is the Difference Between a P\\&L Statement and a Cash Flow Statement?\nA P\\&L or income statement shows readers the revenue and total expenses for a certain period. A cash flow statement, on the other hand, details a company’s cash inflows and outflows during that period. This statement starts with the figure for net profit, which it gets from the P\\&L statement.\n\n## Does Every Company Have to Prepare a P\\&L Statement?\nNo. Only public companies are legally required to prepare the P\\&L and other financial statements and file them with the SEC annually and quarterly. Companies not required to prepare financial statements such as the P\\&L should consider doing so because they provide business owners with a systematic way to obtain a clear view of their company’s financial circumstances.\n\n## Why Does the P\\&L Statement Matter?\nIt matters because it shows investors, analysts, and business owners whether a company is making or losing money. A careful review of the P\\&L also can stimulate ideas for cutting expenses and increasing revenue.\n## The Bottom Line\nA P\\&L statement shows investors and other interested parties the amount of a company’s profit or loss. Revenue and expenses are shown when they occur, not when the money actually moves into or out of the company’s bank account. The P\\&L statement is often the most sought-after financial document because it shows whether a company is profitable.\n\nArticle Sources\n\nInvestopedia requires writers to use primary sources to support their work. These include white papers, government data, original reporting, and interviews with industry experts. We also reference original research from other reputable publishers where appropriate. You can learn more about the standards we follow in producing accurate, unbiased content in our [editorial policy.](https:\/\/www.investopedia.com\/legal-4768893#EditorialPolicy)\n\n1. Harvard Business School Online. “[What Is Accrual Accounting?](https:\/\/online.hbs.edu\/blog\/post\/what-is-accrual-accounting)”\n2. U.S. Securities and Exchange Commission. “[All About Auditors: What Investors Need to Know](https:\/\/www.sec.gov\/about\/reports-publications\/investorpubsaboutauditorshtm).”\n\nRead more\n\n- [Business](https:\/\/www.investopedia.com\/business-4689640)\n- [Corporate Finance](https:\/\/www.investopedia.com\/corporate-finance-and-accounting-4689821)\n- [Financial Statements](https:\/\/www.investopedia.com\/financial-statements-4689816)\n\nPartner Links\n\n## Related Articles\n[![]() ![](https:\/\/www.investopedia.com\/thmb\/yP6E7CCv2WVFsIH6P1scYsGOsec=\/282x188\/filters:no_upscale\\(\\):max_bytes\\(150000\\):strip_icc\\(\\)\/shutterstock_67023106-5bfc2b9846e0fb005144dd87.jpg) Google Balance Sheet Analysis: Financial Health and Management Strength](https:\/\/www.investopedia.com\/articles\/investing\/040515\/analyzing-googles-balance-sheet.asp)\n\n[![Short-Form Report]() ![Short-Form 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and loss (P\\&L) statement. It lists revenues, expenses, and net profit for the period covered. There are typically quarterly and annual P\\&Ls, but some companies might publish monthly P\\&Ls.\n\nPublic companies produce [P\\&L statements](https:\/\/www.investopedia.com\/terms\/p\/plstatement.asp) to meet legal reporting requirements and inform investors. The P\\&L is carefully reviewed by market analysts, investors, and creditors to evaluate a company’s revenues, expenses, and profitability.\n\n### Key Takeaways\n- A P\\&L statement shows a company’s revenues and expenses related to running the business, such as rent, cost of goods sold (COGS), freight, and payroll.\n- Each entry on a P\\&L statement provides insight into how much money a company made and spent.\n- P\\&L statements help companies gauge how well they’re operating and benchmark current performance relative to future projections.\n- P\\&L statements provide financial information that can be compared to that of rivals in the same industry.\n- Investors and lenders use P\\&L statements to inform their investing or lending decisions.\n## What Do Profit and Loss (P\\&L) Statements Show?\nA P\\&L statement contains details about a company’s financial circumstances. It generally has the following sections:\n\n- [**Revenues**](https:\/\/www.investopedia.com\/terms\/r\/revenue.asp): The total amount of income from the sale of goods or services associated with the company’s primary operations.\n- **Expenses**: Costs deducted from revenue, such as the [cost of goods sold (COGS)](https:\/\/www.investopedia.com\/terms\/c\/cogs.asp), wages, rent, marketing, administration costs, utilities, interest expenses, and [depreciation](https:\/\/www.investopedia.com\/terms\/d\/depreciation.asp).\n- **Gains**: Any gains during the period, such as selling unused equipment.\n- **Losses**: Any losses incurred in the period.\n- [**Net Income**](https:\/\/www.investopedia.com\/ask\/answers\/122414\/net-income-same-profit.asp): While not necessarily a section on its own, this line item shows what was earned after accounting for everything. It is also known as the [bottom line](https:\/\/www.investopedia.com\/terms\/b\/bottomline.asp).\n\nDue to how comprehensive it can be, the P\\&L statement paints a clear picture of how much money a company makes and spends. It also highlights whether the company was profitable or suffered a loss.\n\n### Fast Fact\nTo ensure a proper understanding of profitability, accountants use accrual accounting to prepare the P\\&L statement. [Accrual accounting](https:\/\/www.investopedia.com\/terms\/a\/accrualaccounting.asp) recognizes revenue and expenses when they occur rather than when money is received or paid.\n## Why Profit and Loss (P\\&L) Statements Are Public\nP\\&L statements are made available to the public for a variety of reasons. First, [public companies](https:\/\/www.investopedia.com\/terms\/p\/publiccompany.asp) in the United States are required to file their financial statements with the [Securities and Exchange Commission (SEC)](https:\/\/www.investopedia.com\/terms\/s\/sec.asp). The inner financial workings of a company are of great interest to numerous people, including accountants, economists, and investors.\n\nEven business owners need a comprehensive understanding of a company’s financial events and results. The P\\&L and other [financial statements](https:\/\/www.investopedia.com\/terms\/c\/consolidatedfinancialstatement.asp) can help them identify unnecessary expenditures, opportunities to increase revenue, and other ways to improve performance.\n\nFor all of these professionals, assessing a company’s financial strength means taking a detailed look at [total revenue](https:\/\/www.investopedia.com\/terms\/t\/total_revenue_test.asp), expenditures, the amount of [debt](https:\/\/www.investopedia.com\/terms\/d\/debt.asp) or [leverage](https:\/\/www.investopedia.com\/terms\/l\/leverage.asp), additional investments, secondary operations, and tax burdens.\n\nFinancial statements, including the P\\&L, can help businesses understand current performance relative to projections and create realistic forecasts. They can also help business owners and investors compare a business’s performance against competitors.\n\n## How Investors Use Profit and Loss (P\\&L) Statements\nInvestors and lenders use data from P\\&L statements to determine a company’s [profitability](https:\/\/www.investopedia.com\/ask\/answers\/012715\/what-difference-between-profitability-and-profit.asp) and [risk level](https:\/\/www.investopedia.com\/terms\/r\/risktolerance.asp). For example, companies must provide evidence of their financial standing and ability to make consistent payments to apply for loans.\n\nIf the P\\&L statement reflects that a company does not generate enough [operating income](https:\/\/www.investopedia.com\/terms\/o\/operatingincome.asp) to adequately cover current loan payments, banks are less likely to loan additional funds. Sometimes, a downturn in income could signal loan [default](https:\/\/www.investopedia.com\/terms\/d\/default2.asp).\n\nIf you’re an investor making important investment decisions, be sure to compare the P\\&L statements of companies that are similar in size and within the same [industry or sector](https:\/\/www.investopedia.com\/ask\/answers\/05\/industrysector.asp). This gives you an apples-to-apples comparison. Comparing the financial statements of a large [pharmaceutical company](https:\/\/www.investopedia.com\/articles\/06\/drugmarket.asp) with those of a small energy company doesn’t make sense, as they have different factors that play into their revenues and expenses.\n\n### Fast Fact\nProfit and loss statements may commonly be referred to as any of the following:\n\n- Statement of profit and loss\n- Statement of operations\n- Statement of financial results or income\n- Earnings statement\n- Expense statement\n- Income statement\n## Example of a Profit and Loss (P\\&L) Statement\nSome companies publish their P\\&L statements under that name. Others may use different terms to describe the same thing. Consider Pressure BioSciences ([PBIO](https:\/\/www.investopedia.com\/markets\/quote?tvwidgetsymbol=PBIO)), which calls its P\\&L a statement of operations.\n\nThe image below shows how the P\\&L statement or, in this case, the statement of operations is broken down:\n\nThis particular statement is broken into three sections:\n\n- Revenue\n- Costs and Expenses\n- Other (Expense) Income\n\nIt then lists net losses and shareholder information at the bottom. The total value under the expense category is subtracted from the total value of the company’s revenue, resulting in an [operating profit](https:\/\/www.investopedia.com\/terms\/o\/operating_profit.asp) if the result is positive or an [operating loss](https:\/\/www.investopedia.com\/terms\/o\/operating-loss.asp) if it’s negative.\n\n## What Is the Difference Between a P\\&L Statement and a Cash Flow Statement?\nA P\\&L or income statement shows readers the revenue and total expenses for a certain period. A cash flow statement, on the other hand, details a company’s cash inflows and outflows during that period. This statement starts with the figure for net profit, which it gets from the P\\&L statement.\n\n## Does Every Company Have to Prepare a P\\&L Statement?\nNo. Only public companies are legally required to prepare the P\\&L and other financial statements and file them with the SEC annually and quarterly. Companies not required to prepare financial statements such as the P\\&L should consider doing so because they provide business owners with a systematic way to obtain a clear view of their company’s financial circumstances.\n\n## Why Does the P\\&L Statement Matter?\nIt matters because it shows investors, analysts, and business owners whether a company is making or losing money. A careful review of the P\\&L also can stimulate ideas for cutting expenses and increasing revenue.\n## The Bottom Line\nA P\\&L statement shows investors and other interested parties the amount of a company’s profit or loss. Revenue and expenses are shown when they occur, not when the money actually moves into or out of the company’s bank account. The P\\&L statement is often the most sought-after financial document because it shows whether a company is profitable.","meta_canonical":null}

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Boilerpipe Text	A company’s statement of income is often called its profit and loss (P&L) statement. It lists revenues, expenses, and net profit for the period covered. There are typically quarterly and annual P&Ls, but some companies might publish monthly P&Ls. Public companies produce P&L statements to meet legal reporting requirements and inform investors. The P&L is carefully reviewed by market analysts, investors, and creditors to evaluate a company’s revenues, expenses, and profitability. Key Takeaways A P&L statement shows a company’s revenues and expenses related to running the business, such as rent, cost of goods sold (COGS), freight, and payroll. Each entry on a P&L statement provides insight into how much money a company made and spent. P&L statements help companies gauge how well they’re operating and benchmark current performance relative to future projections. P&L statements provide financial information that can be compared to that of rivals in the same industry. Investors and lenders use P&L statements to inform their investing or lending decisions. What Do Profit and Loss (P&L) Statements Show? A P&L statement contains details about a company’s financial circumstances. It generally has the following sections: Revenues : The total amount of income from the sale of goods or services associated with the company’s primary operations. Expenses : Costs deducted from revenue, such as the cost of goods sold (COGS) , wages, rent, marketing, administration costs, utilities, interest expenses, and depreciation . Gains : Any gains during the period, such as selling unused equipment. Losses : Any losses incurred in the period. Net Income : While not necessarily a section on its own, this line item shows what was earned after accounting for everything. It is also known as the bottom line . Due to how comprehensive it can be, the P&L statement paints a clear picture of how much money a company makes and spends. It also highlights whether the company was profitable or suffered a loss. Fast Fact To ensure a proper understanding of profitability, accountants use accrual accounting to prepare the P&L statement. Accrual accounting recognizes revenue and expenses when they occur rather than when money is received or paid. Why Profit and Loss (P&L) Statements Are Public P&L statements are made available to the public for a variety of reasons. First, public companies in the United States are required to file their financial statements with the Securities and Exchange Commission (SEC) . The inner financial workings of a company are of great interest to numerous people, including accountants, economists, and investors. Even business owners need a comprehensive understanding of a company’s financial events and results. The P&L and other financial statements can help them identify unnecessary expenditures, opportunities to increase revenue, and other ways to improve performance. For all of these professionals, assessing a company’s financial strength means taking a detailed look at total revenue , expenditures, the amount of debt or leverage , additional investments, secondary operations, and tax burdens. Financial statements, including the P&L, can help businesses understand current performance relative to projections and create realistic forecasts. They can also help business owners and investors compare a business’s performance against competitors. How Investors Use Profit and Loss (P&L) Statements Investors and lenders use data from P&L statements to determine a company’s profitability and risk level . For example, companies must provide evidence of their financial standing and ability to make consistent payments to apply for loans. If the P&L statement reflects that a company does not generate enough operating income to adequately cover current loan payments, banks are less likely to loan additional funds. Sometimes, a downturn in income could signal loan default . If you’re an investor making important investment decisions, be sure to compare the P&L statements of companies that are similar in size and within the same industry or sector . This gives you an apples-to-apples comparison. Comparing the financial statements of a large pharmaceutical company with those of a small energy company doesn’t make sense, as they have different factors that play into their revenues and expenses. Fast Fact Profit and loss statements may commonly be referred to as any of the following: Statement of profit and loss Statement of operations Statement of financial results or income Earnings statement Expense statement Income statement Example of a Profit and Loss (P&L) Statement Some companies publish their P&L statements under that name. Others may use different terms to describe the same thing. Consider Pressure BioSciences ( PBIO ), which calls its P&L a statement of operations. The image below shows how the P&L statement or, in this case, the statement of operations is broken down: This particular statement is broken into three sections: Revenue Costs and Expenses Other (Expense) Income It then lists net losses and shareholder information at the bottom. The total value under the expense category is subtracted from the total value of the company’s revenue, resulting in an operating profit if the result is positive or an operating loss if it’s negative. What Is the Difference Between a P&L Statement and a Cash Flow Statement? A P&L or income statement shows readers the revenue and total expenses for a certain period. A cash flow statement, on the other hand, details a company’s cash inflows and outflows during that period. This statement starts with the figure for net profit, which it gets from the P&L statement. Does Every Company Have to Prepare a P&L Statement? No. Only public companies are legally required to prepare the P&L and other financial statements and file them with the SEC annually and quarterly. Companies not required to prepare financial statements such as the P&L should consider doing so because they provide business owners with a systematic way to obtain a clear view of their company’s financial circumstances. Why Does the P&L Statement Matter? It matters because it shows investors, analysts, and business owners whether a company is making or losing money. A careful review of the P&L also can stimulate ideas for cutting expenses and increasing revenue. The Bottom Line A P&L statement shows investors and other interested parties the amount of a company’s profit or loss. Revenue and expenses are shown when they occur, not when the money actually moves into or out of the company’s bank account. The P&L statement is often the most sought-after financial document because it shows whether a company is profitable.
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[Top Country for Retirement](https://www.investopedia.com/top-country-for-retirement-revealed-and-its-mediterranean-lifestyle-might-improve-your-longevity-11892954) Table of Contents Expand Table of Contents - [What Do P\&L Statements Show?](https://www.investopedia.com/ask/answers/122314/whats-example-pl-statement.asp#toc-what-do-profit-and-loss-pl-statements-show) - [Why P\&L Statements Are Public](https://www.investopedia.com/ask/answers/122314/whats-example-pl-statement.asp#toc-why-profit-and-loss-pl-statements-are-public) - [How Investors Use P\&L Statements](https://www.investopedia.com/ask/answers/122314/whats-example-pl-statement.asp#toc-how-investors-use-profit-and-loss-pl-statements) - [Example](https://www.investopedia.com/ask/answers/122314/whats-example-pl-statement.asp#toc-example-of-a-profit-and-loss-pl-statement) - [FAQs](https://www.investopedia.com/ask/answers/122314/whats-example-pl-statement.asp#toc-what-is-the-difference-between-a-pl-statement-and-a-cash-flow-statement) - [The Bottom Line](https://www.investopedia.com/ask/answers/122314/whats-example-pl-statement.asp#toc-the-bottom-line) # What Is an Example of a Profit and Loss (P\&L) Statement? By [J.B. Maverick](https://www.investopedia.com/contributors/53889/) ![]() ![](https://www.investopedia.com/thmb/kS3VBrdzs7YL38q7IpaQ75GBXPk=/200x200/filters:no_upscale\(\):max_bytes\(150000\):strip_icc\(\)/picture-53889-1440688003-5bfc2a8846e0fb0083c04dc5.jpg) [Full Bio](https://www.investopedia.com/contributors/53889/) J.B. Maverick is an active trader, commodity futures broker, and stock market analyst 17+ years of experience, in addition to 10+ years of experience as a finance writer and book editor. Learn about our [editorial policies](https://www.investopedia.com/legal-4768893#editorial-policy) Updated April 13, 2025 Reviewed by [Amy Drury](https://www.investopedia.com/amy-drury-4776200) ![Amy Drury]() ![Amy Drury](https://www.investopedia.com/thmb/gDmuBWBr-D62xocOgmZOiyPfFU8=/200x200/filters:no_upscale\(\):max_bytes\(150000\):strip_icc\(\)/AmyImage-AmyDrury-d6b6143c6d5c49a0add2201e25969457.jpg) Reviewed by Amy Drury [Full Bio](https://www.investopedia.com/amy-drury-4776200) Amy is an ACA and the CEO and founder of OnPoint Learning, a financial training company delivering training to financial professionals. She has nearly two decades of experience in the financial industry and as a financial instructor for industry professionals and individuals. Learn about our [Financial Review Board](https://www.investopedia.com/investopedia-financial-review-board-5076269) Fact checked by [Suzanne Kvilhaug](https://www.investopedia.com/suzanne-kvilhaug-5197828) ![Suzanne Kvilhaug]() ![Suzanne Kvilhaug](https://www.investopedia.com/thmb/znbFHeELuyfkeore2XU_GHw2QaM=/200x200/filters:no_upscale\(\):max_bytes\(150000\):strip_icc\(\)/SuzannesHeadshot-3dcd99dc3f2e405e8bd37271894491ac.jpg) Fact checked by Suzanne Kvilhaug [Full Bio](https://www.investopedia.com/suzanne-kvilhaug-5197828) Suzanne is a content marketer, writer, and fact-checker. She holds a Bachelor of Science in Finance degree from Bridgewater State University and helps develop content strategies. Learn about our [editorial policies](https://www.investopedia.com/legal-4768893#editorial-policy) ![Image](https://www.investopedia.com/thmb/wJnEg57WmvtwSXxQ7PDRrkmXzkM=/1500x0/filters:no_upscale\(\):max_bytes\(150000\):strip_icc\(\)/tax_shutterstock_181463525-5bfc318bc9e77c0026b616d3-2edc54da6f57439a8cfb452f6bbc8edd.jpg) ![Image](https://www.investopedia.com/thmb/wJnEg57WmvtwSXxQ7PDRrkmXzkM=/1500x0/filters:no_upscale\(\):max_bytes\(150000\):strip_icc\(\)/tax_shutterstock_181463525-5bfc318bc9e77c0026b616d3-2edc54da6f57439a8cfb452f6bbc8edd.jpg) Shutterstock Close A company’s statement of income is often called its profit and loss (P\&L) statement. It lists revenues, expenses, and net profit for the period covered. There are typically quarterly and annual P\&Ls, but some companies might publish monthly P\&Ls. Public companies produce [P\&L statements](https://www.investopedia.com/terms/p/plstatement.asp) to meet legal reporting requirements and inform investors. The P\&L is carefully reviewed by market analysts, investors, and creditors to evaluate a company’s revenues, expenses, and profitability. ### Key Takeaways - A P\&L statement shows a company’s revenues and expenses related to running the business, such as rent, cost of goods sold (COGS), freight, and payroll. - Each entry on a P\&L statement provides insight into how much money a company made and spent. - P\&L statements help companies gauge how well they’re operating and benchmark current performance relative to future projections. - P\&L statements provide financial information that can be compared to that of rivals in the same industry. - Investors and lenders use P\&L statements to inform their investing or lending decisions. ## What Do Profit and Loss (P\&L) Statements Show? A P\&L statement contains details about a company’s financial circumstances. It generally has the following sections: - [Revenues](https://www.investopedia.com/terms/r/revenue.asp): The total amount of income from the sale of goods or services associated with the company’s primary operations. - Expenses: Costs deducted from revenue, such as the [cost of goods sold (COGS)](https://www.investopedia.com/terms/c/cogs.asp), wages, rent, marketing, administration costs, utilities, interest expenses, and [depreciation](https://www.investopedia.com/terms/d/depreciation.asp). - Gains: Any gains during the period, such as selling unused equipment. - Losses: Any losses incurred in the period. - [Net Income](https://www.investopedia.com/ask/answers/122414/net-income-same-profit.asp): While not necessarily a section on its own, this line item shows what was earned after accounting for everything. It is also known as the [bottom line](https://www.investopedia.com/terms/b/bottomline.asp). Due to how comprehensive it can be, the P\&L statement paints a clear picture of how much money a company makes and spends. It also highlights whether the company was profitable or suffered a loss. ### Fast Fact To ensure a proper understanding of profitability, accountants use accrual accounting to prepare the P\&L statement. [Accrual accounting](https://www.investopedia.com/terms/a/accrualaccounting.asp) recognizes revenue and expenses when they occur rather than when money is received or paid. ## Why Profit and Loss (P\&L) Statements Are Public P\&L statements are made available to the public for a variety of reasons. First, [public companies](https://www.investopedia.com/terms/p/publiccompany.asp) in the United States are required to file their financial statements with the [Securities and Exchange Commission (SEC)](https://www.investopedia.com/terms/s/sec.asp). The inner financial workings of a company are of great interest to numerous people, including accountants, economists, and investors. Even business owners need a comprehensive understanding of a company’s financial events and results. The P\&L and other [financial statements](https://www.investopedia.com/terms/c/consolidatedfinancialstatement.asp) can help them identify unnecessary expenditures, opportunities to increase revenue, and other ways to improve performance. For all of these professionals, assessing a company’s financial strength means taking a detailed look at [total revenue](https://www.investopedia.com/terms/t/total_revenue_test.asp), expenditures, the amount of [debt](https://www.investopedia.com/terms/d/debt.asp) or [leverage](https://www.investopedia.com/terms/l/leverage.asp), additional investments, secondary operations, and tax burdens. Financial statements, including the P\&L, can help businesses understand current performance relative to projections and create realistic forecasts. They can also help business owners and investors compare a business’s performance against competitors. ## How Investors Use Profit and Loss (P\&L) Statements Investors and lenders use data from P\&L statements to determine a company’s [profitability](https://www.investopedia.com/ask/answers/012715/what-difference-between-profitability-and-profit.asp) and [risk level](https://www.investopedia.com/terms/r/risktolerance.asp). For example, companies must provide evidence of their financial standing and ability to make consistent payments to apply for loans. If the P\&L statement reflects that a company does not generate enough [operating income](https://www.investopedia.com/terms/o/operatingincome.asp) to adequately cover current loan payments, banks are less likely to loan additional funds. Sometimes, a downturn in income could signal loan [default](https://www.investopedia.com/terms/d/default2.asp). If you’re an investor making important investment decisions, be sure to compare the P\&L statements of companies that are similar in size and within the same [industry or sector](https://www.investopedia.com/ask/answers/05/industrysector.asp). This gives you an apples-to-apples comparison. Comparing the financial statements of a large [pharmaceutical company](https://www.investopedia.com/articles/06/drugmarket.asp) with those of a small energy company doesn’t make sense, as they have different factors that play into their revenues and expenses. ### Fast Fact Profit and loss statements may commonly be referred to as any of the following: - Statement of profit and loss - Statement of operations - Statement of financial results or income - Earnings statement - Expense statement - Income statement ## Example of a Profit and Loss (P\&L) Statement Some companies publish their P\&L statements under that name. Others may use different terms to describe the same thing. Consider Pressure BioSciences ([PBIO](https://www.investopedia.com/markets/quote?tvwidgetsymbol=PBIO)), which calls its P\&L a statement of operations. The image below shows how the P\&L statement or, in this case, the statement of operations is broken down: ![Pressure BioSciences income statement]() ![Pressure BioSciences income statement](https://www.investopedia.com/thmb/zst2c2HxugOyE25xG4o-B8Hk_Ws=/1500x0/filters:no_upscale\(\):max_bytes\(150000\):strip_icc\(\)/PressureBioSciences10Q2024-e427b171bc39485ca84a18d28cb46c91.jpg) This particular statement is broken into three sections: - Revenue - Costs and Expenses - Other (Expense) Income It then lists net losses and shareholder information at the bottom. The total value under the expense category is subtracted from the total value of the company’s revenue, resulting in an [operating profit](https://www.investopedia.com/terms/o/operating_profit.asp) if the result is positive or an [operating loss](https://www.investopedia.com/terms/o/operating-loss.asp) if it’s negative. ## What Is the Difference Between a P\&L Statement and a Cash Flow Statement? A P\&L or income statement shows readers the revenue and total expenses for a certain period. A cash flow statement, on the other hand, details a company’s cash inflows and outflows during that period. This statement starts with the figure for net profit, which it gets from the P\&L statement. ## Does Every Company Have to Prepare a P\&L Statement? No. Only public companies are legally required to prepare the P\&L and other financial statements and file them with the SEC annually and quarterly. Companies not required to prepare financial statements such as the P\&L should consider doing so because they provide business owners with a systematic way to obtain a clear view of their company’s financial circumstances. ## Why Does the P\&L Statement Matter? It matters because it shows investors, analysts, and business owners whether a company is making or losing money. A careful review of the P\&L also can stimulate ideas for cutting expenses and increasing revenue. ## The Bottom Line A P\&L statement shows investors and other interested parties the amount of a company’s profit or loss. Revenue and expenses are shown when they occur, not when the money actually moves into or out of the company’s bank account. The P\&L statement is often the most sought-after financial document because it shows whether a company is profitable. Article Sources Investopedia requires writers to use primary sources to support their work. These include white papers, government data, original reporting, and interviews with industry experts. We also reference original research from other reputable publishers where appropriate. You can learn more about the standards we follow in producing accurate, unbiased content in our [editorial policy.](https://www.investopedia.com/legal-4768893#EditorialPolicy) 1. Harvard Business School Online. “[What Is Accrual Accounting?](https://online.hbs.edu/blog/post/what-is-accrual-accounting)” 2. U.S. Securities and Exchange Commission. “[All About Auditors: What Investors Need to Know](https://www.sec.gov/about/reports-publications/investorpubsaboutauditorshtm).” Read more - [Business](https://www.investopedia.com/business-4689640) - [Corporate Finance](https://www.investopedia.com/corporate-finance-and-accounting-4689821) - [Financial Statements](https://www.investopedia.com/financial-statements-4689816) Partner Links ## Related Articles [![]() ![](https://www.investopedia.com/thmb/yP6E7CCv2WVFsIH6P1scYsGOsec=/282x188/filters:no_upscale\(\):max_bytes\(150000\):strip_icc\(\)/shutterstock_67023106-5bfc2b9846e0fb005144dd87.jpg) Google Balance Sheet Analysis: Financial Health and Management Strength](https://www.investopedia.com/articles/investing/040515/analyzing-googles-balance-sheet.asp) [![Short-Form Report]() ![Short-Form 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Readable Markdown	A company’s statement of income is often called its profit and loss (P\&L) statement. It lists revenues, expenses, and net profit for the period covered. There are typically quarterly and annual P\&Ls, but some companies might publish monthly P\&Ls. Public companies produce [P\&L statements](https://www.investopedia.com/terms/p/plstatement.asp) to meet legal reporting requirements and inform investors. The P\&L is carefully reviewed by market analysts, investors, and creditors to evaluate a company’s revenues, expenses, and profitability. ### Key Takeaways - A P\&L statement shows a company’s revenues and expenses related to running the business, such as rent, cost of goods sold (COGS), freight, and payroll. - Each entry on a P\&L statement provides insight into how much money a company made and spent. - P\&L statements help companies gauge how well they’re operating and benchmark current performance relative to future projections. - P\&L statements provide financial information that can be compared to that of rivals in the same industry. - Investors and lenders use P\&L statements to inform their investing or lending decisions. ## What Do Profit and Loss (P\&L) Statements Show? A P\&L statement contains details about a company’s financial circumstances. It generally has the following sections: - [Revenues](https://www.investopedia.com/terms/r/revenue.asp): The total amount of income from the sale of goods or services associated with the company’s primary operations. - Expenses: Costs deducted from revenue, such as the [cost of goods sold (COGS)](https://www.investopedia.com/terms/c/cogs.asp), wages, rent, marketing, administration costs, utilities, interest expenses, and [depreciation](https://www.investopedia.com/terms/d/depreciation.asp). - Gains: Any gains during the period, such as selling unused equipment. - Losses: Any losses incurred in the period. - [Net Income](https://www.investopedia.com/ask/answers/122414/net-income-same-profit.asp): While not necessarily a section on its own, this line item shows what was earned after accounting for everything. It is also known as the [bottom line](https://www.investopedia.com/terms/b/bottomline.asp). Due to how comprehensive it can be, the P\&L statement paints a clear picture of how much money a company makes and spends. It also highlights whether the company was profitable or suffered a loss. ### Fast Fact To ensure a proper understanding of profitability, accountants use accrual accounting to prepare the P\&L statement. [Accrual accounting](https://www.investopedia.com/terms/a/accrualaccounting.asp) recognizes revenue and expenses when they occur rather than when money is received or paid. ## Why Profit and Loss (P\&L) Statements Are Public P\&L statements are made available to the public for a variety of reasons. First, [public companies](https://www.investopedia.com/terms/p/publiccompany.asp) in the United States are required to file their financial statements with the [Securities and Exchange Commission (SEC)](https://www.investopedia.com/terms/s/sec.asp). The inner financial workings of a company are of great interest to numerous people, including accountants, economists, and investors. Even business owners need a comprehensive understanding of a company’s financial events and results. The P\&L and other [financial statements](https://www.investopedia.com/terms/c/consolidatedfinancialstatement.asp) can help them identify unnecessary expenditures, opportunities to increase revenue, and other ways to improve performance. For all of these professionals, assessing a company’s financial strength means taking a detailed look at [total revenue](https://www.investopedia.com/terms/t/total_revenue_test.asp), expenditures, the amount of [debt](https://www.investopedia.com/terms/d/debt.asp) or [leverage](https://www.investopedia.com/terms/l/leverage.asp), additional investments, secondary operations, and tax burdens. Financial statements, including the P\&L, can help businesses understand current performance relative to projections and create realistic forecasts. They can also help business owners and investors compare a business’s performance against competitors. ## How Investors Use Profit and Loss (P\&L) Statements Investors and lenders use data from P\&L statements to determine a company’s [profitability](https://www.investopedia.com/ask/answers/012715/what-difference-between-profitability-and-profit.asp) and [risk level](https://www.investopedia.com/terms/r/risktolerance.asp). For example, companies must provide evidence of their financial standing and ability to make consistent payments to apply for loans. If the P\&L statement reflects that a company does not generate enough [operating income](https://www.investopedia.com/terms/o/operatingincome.asp) to adequately cover current loan payments, banks are less likely to loan additional funds. Sometimes, a downturn in income could signal loan [default](https://www.investopedia.com/terms/d/default2.asp). If you’re an investor making important investment decisions, be sure to compare the P\&L statements of companies that are similar in size and within the same [industry or sector](https://www.investopedia.com/ask/answers/05/industrysector.asp). This gives you an apples-to-apples comparison. Comparing the financial statements of a large [pharmaceutical company](https://www.investopedia.com/articles/06/drugmarket.asp) with those of a small energy company doesn’t make sense, as they have different factors that play into their revenues and expenses. ### Fast Fact Profit and loss statements may commonly be referred to as any of the following: - Statement of profit and loss - Statement of operations - Statement of financial results or income - Earnings statement - Expense statement - Income statement ## Example of a Profit and Loss (P\&L) Statement Some companies publish their P\&L statements under that name. Others may use different terms to describe the same thing. Consider Pressure BioSciences ([PBIO](https://www.investopedia.com/markets/quote?tvwidgetsymbol=PBIO)), which calls its P\&L a statement of operations. The image below shows how the P\&L statement or, in this case, the statement of operations is broken down: This particular statement is broken into three sections: - Revenue - Costs and Expenses - Other (Expense) Income It then lists net losses and shareholder information at the bottom. The total value under the expense category is subtracted from the total value of the company’s revenue, resulting in an [operating profit](https://www.investopedia.com/terms/o/operating_profit.asp) if the result is positive or an [operating loss](https://www.investopedia.com/terms/o/operating-loss.asp) if it’s negative. ## What Is the Difference Between a P\&L Statement and a Cash Flow Statement? A P\&L or income statement shows readers the revenue and total expenses for a certain period. A cash flow statement, on the other hand, details a company’s cash inflows and outflows during that period. This statement starts with the figure for net profit, which it gets from the P\&L statement. ## Does Every Company Have to Prepare a P\&L Statement? No. Only public companies are legally required to prepare the P\&L and other financial statements and file them with the SEC annually and quarterly. Companies not required to prepare financial statements such as the P\&L should consider doing so because they provide business owners with a systematic way to obtain a clear view of their company’s financial circumstances. ## Why Does the P\&L Statement Matter? It matters because it shows investors, analysts, and business owners whether a company is making or losing money. A careful review of the P\&L also can stimulate ideas for cutting expenses and increasing revenue. ## The Bottom Line A P\&L statement shows investors and other interested parties the amount of a company’s profit or loss. Revenue and expenses are shown when they occur, not when the money actually moves into or out of the company’s bank account. The P\&L statement is often the most sought-after financial document because it shows whether a company is profitable.
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