A financial statement summarizing revenues, costs, and expenses over a specific period. Shows whether the business made a profit or loss. Also called a Profit & Loss statement (P&L).
How to read it
Start at revenue, subtract direct costs to reach gross profit, then subtract operating expenses and other items to determine profit. Match the statement period when comparing performance.
For the fictional company, $750,000 of revenue less $450,000 of COGS leaves $300,000 in gross profit.
Where this connects to Impresa
You may encounter this concept when reviewing Financial Health. Start with the underlying inputs and check the applicable reporting period before interpreting the result.
Read the Financial Health guideDefinitions here explain the concept. Accounting treatments, formulas, and industry comparisons may vary. Use your own records and qualified advice for material decisions.