Profit and loss statements and business valuations
A Profit and Loss Statement (or P&L) shows the profit (or loss) of a company or entity over a certain period, normally 1 year.
There are five common elements:
- Revenue less
- Cost of Goods Sold equals
- Gross Profit less
- Expenses equals
- Net Profit
Please note this information is provided as a guide only.
For more information on the components of a Profit and Loss Statement and their importance visit the Australian Government’s Department of Industry, Innovation and Science site for Business.