How Investors Use Profit and Loss (P&L) Statements Investors and lenders use data from P&L statements to determine a company’s profitability and risk level. For example, companies must provide ...

This is the final part of the profit and loss account. If the net profit figure is negative, the business has made a loss.

When a company makes money after it pays all its costs, it is said to have made a profit. If a company does not make enough money to cover all its costs, it is said to have made a loss.

That’s why every business should track revenue and expenses with a profit and loss (P&L) statement. A P&L statement helps you measure your company’s financial health and see how your business is ...