The best way to ensure you’re looking at the right document is to look for operating figures and profit data. Often, P&L statements come packaged with the company’s balance sheet and cash flow ...

A profit and loss statement summarizes a company's revenues and expenses during a given time period. ... top-rated podcasts, and non-profit The Motley Fool Foundation. ...

3. Knowing what your profit margin is. You can easily calculate the profit margin from your income statement, as the profit margin formula is (Total Revenue - Total Expenses) / Total Revenue.

A profit and loss (P&L) statement is a type of financial report that summarizes your company’s revenue, expenses and net income or losses over a particular period of time.