Income statement (P&L)

A statement of revenue, costs and profit over a period. Revenue − COGS = gross profit; gross profit − OpEx = operating profit.

Example

$120k revenue − $24k COGS = $96k gross profit; − $150k OpEx = a $54k operating loss.

Important

It shows performance over a period, not what is in the bank. Read it beside the cash flow statement or it will mislead you.

Related terms