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Profit and Loss (P&L)
Definition
A financial statement that summarizes a company’s revenues, costs, and expenses over a specific period, showing whether the business is profitable or operating at a loss.
How It's Calculated
Revenue − Cost of Goods Sold (COGS) − Operating Expenses = Profit (or Loss)
Example
A snack brand reviews its P&L and sees $10 million in revenue, $6 million in COGS, and $3 million in operating expenses, resulting in $1 million in profit for the period.
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