What is Profit and Loss Statement?
A definition of Profit and Loss Statement
“A Profit and Loss Statement is a financial report that summarizes revenues, costs, and expenses incurred during a specific period, providing insight into a company’s profitability and financial performance.”

Business Glossary > What is Profit and Loss Statement?
Examples of Profit and Loss Statement in a Sentence:
The Profit and Loss Statement revealed the company’s net profit for the quarter.
Reviewing the Profit and Loss Statement helps assess the company’s financial health.
Our accountant prepared the annual Profit and Loss Statement.
Why is Profit and Loss Statement Important in Business?
The Profit and Loss Statement is crucial for understanding a company’s profitability. It assists managers, investors, and analysts in making informed decisions about investments, cost management, and strategic planning. Regularly reviewing this statement helps identify trends and potential financial issues.
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Associated Terms
Here are some associated business terms and synonyms for “Profit and Loss Statement”:
- Income Statement
- Earnings Statement
- Operating Statement
Amazon’s Profit and Loss Statement
In its Profit and Loss Statement, Amazon reported significant revenue growth driven by its e-commerce platform and cloud services. The statement highlighted increased operating expenses but overall profitability, reflecting the company’s strategic investment in technology and infrastructure.
Final Notes on Profit and Loss Statement
Understanding Profit and Loss Statements is vital for tracking business performance over time.
- Focus on revenue growth trends.
- Monitor cost control measures.
- Analyze profitability to inform strategic planning.
Regular reviews enable timely adjustments and better financial decision-making.
This has been a definition of Profit and Loss Statement meaning.
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