Finance and accounting
Income statement (P&L)
Revenue, costs and profit over a period.
Facts checked against sources onWhat does Income statement (P&L) mean?
The income statement, or profit and loss statement (P&L), shows revenue, then subtracts costs step by step to reach gross profit, operating profit and net income for a period such as a year. In a P&L case, compare each line across periods to find the one that moved profit most.
Where does it come up in case interview prep?
- The profit and loss statement, line by lineLesson in Business basics for non-business learners
- How the three statements link: one company through all threeLesson in Reading a business through its numbers: the three statements, cash and value
- The cash flow statement, and why profit is not cashLesson in Reading a business through its numbers: the three statements, cash and value
- EBITDA versus operating profit versus free cash flowLesson in Reading a business through its numbers: the three statements, cash and value
- Profit and lossLesson
- Financial services P&L: banks and insurersLesson
Related terms
- Balance sheetWhat a company owns and owes at one point in time.
- Cash flow statementWhere cash came from and where it went.
- Gross profit and gross marginRevenue minus the cost of goods sold, as an amount or a percent.
- EBIT and operating profitProfit from operations, before interest and tax.
- ProfitThe money left over after costs. Revenue minus cost.
- RevenueMoney earned from sales, before costs.
- CostWhat it takes to make and sell the product in a period.
- Fixed costA cost that stays the same when volume changes, within a normal range.
Learn it in context
See Income statement (P&L) at work in a lesson from Business basics for non-business learners, with checks as you go.
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