A Profit and Loss (P&L) Statement is a financial statement used to assess a business’s performance and financial health over a certain period of time. It shows the net income or loss within a given period, calculated by subtracting total expenses from total revenues. A P&L Statement provides insight into how well a business is managing its resources, whether it is breaking even, and how much profit it is making. It can be used as a tool for companies to analyze their performance, track their progress and plan for the future. As such, taking the time to understand the details of a business’s P&L Statement can pay off in terms of enhanced decision-making power.