Profit and Loss Report

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The Profit and Loss Report is an income statement for the business for a specific reporting Accounting Period. By contrast, the Balance Sheet Report is for a specific point in time.

The report is the total of all Profit and Loss Accounts from the start to end of the Accounting Period and shows:

This report is primarily used to determine the profitability of the business.

It summarises both Operating Activity and Non-Operating Activity income and expenses and these can be directly compared with previous Accounting Periods in Year on Year or Quarter on Quarter performance reports.

This report may be used to calculate:

  • Gross Profit.
  • Operating Profit.
  • ROE - return on equity.
  • ROA - return on assets.
  • EBIT - earnings before interest and taxes.
  • EBITDA - and earnings before interest taxes and amortisation.

Also see the list of other Finance Reports.