Definition

Noun: A formal financial document that summarizes a company's revenues, costs, and expenses incurred during a specific accounting period, such as a quarter or a year. It shows the company's ability to generate profit by increasing revenue, reducing costs, or both. The statement culminates in a net profit or net loss figure for the period.

Usage

This term is used in business, accounting, and finance contexts to refer to a core financial report. It is a standard document for assessing a company's financial performance over time.

Examples

• The board reviewed the profit-and-loss statement before approving the annual budget.
• A detailed profit-and-loss statement is required when applying for a business loan.
• Investors analyzed the quarterly profit-and-loss statement to gauge the company's health.

Advanced Usage

• Commonly abbreviated as: "P&L statement" or simply "the P&L".
• Synonymous with: "Income statement" or "statement of operations". These terms are often used interchangeably in business English.
• It is one of the three core financial statements, alongside the balance sheet and the cash flow statement.

Variants and Related Words

• Income Statement (n.): The most common synonym for a profit-and-loss statement.
• Statement of Operations (n.): A formal alternative name for this financial report.
• P&L (n.): The standard abbreviation used in spoken and written business English (e.g., "Let's check the P&L").

Synonyms

• Income statement
• Earnings statement
• Statement of operations
• Statement of financial performance

Related Phrases

• To run a P&L: To generate or prepare a profit-and-loss statement.
  • Example: The accountant will run a P&L for the last quarter.
• Bottom line: An idiom referring to the net profit or loss figure found at the bottom of a profit-and-loss statement.
  • Example: The new strategy improved our bottom line significantly.

Noun

1. a financial statement that gives operating results for a specific period