Profit & Loss Statement (P&L)

Definition:

A financial report that details a company’s performance over a specific period of time by subtracting expenses from revenue to obtain net income; also known as an income statement.

Examples:

Including the business profit and loss statement in the packet sent out to the major shareholders before the annual meeting helps them to prepare for the planning discussions.

It’s usually best if most of the employees in a company don’t pay too much attention to each quarter’s profit and loss statement, so they can focus on long-term goals instead of the short-term market fluctuations.