PNL, which stands for Profit and Loss, is a financial statement that summarizes the revenues, costs, and expenses incurred during a specific period of time, usually a fiscal quarter or year.
The PNL statement shows whether a company is making a profit or incurring a loss by subtracting total expenses from total revenue. It provides an overview of a company's financial performance and can be used to assess its profitability and make strategic decisions.
PNL is an important tool for investors, analysts, and managers to evaluate the financial health of a company and its ability to generate profits. It is also used for tax purposes and regulatory compliance.
Key components of a PNL statement include revenue, cost of goods sold, gross profit, operating expenses, net income, and earnings per share. It is important for businesses to regularly review and analyze their PNL statements to make informed decisions and improve financial performance.
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