Profit & Loss Statement
P&L shows if business made or lost money.
Format
Revenue (Sales) Total sales: ₹10,00,000
(-) Cost of Goods Sold (COGS) Direct costs: ₹6,00,000 Gross Profit: ₹4,00,000
(-) Operating Expenses
- Salaries: ₹1,50,000
- Rent: ₹50,000
- Utilities: ₹30,000
- Marketing: ₹40,000 Total: ₹2,70,000
Operating Profit (EBITDA): ₹1,30,000
(-) Depreciation: ₹20,000 (-) Interest: ₹10,000
Profit Before Tax (PBT): ₹1,00,000 (-) Tax @30%: ₹30,000
Net Profit (PAT): ₹70,000
Key Ratios
Gross Margin = (Gross Profit/Sales) × 100 = 40% Net Margin = (Net Profit/Sales) × 100 = 7%
Higher margin = More efficient business!
🎯 Investor Check
Look for CONSISTENT profit over 5+ years. One good year means nothing!
Quiz
Test Your Knowledge
Test Your Knowledge
Question 1 of 1
1. What is the main concept covered in this lesson?
Key Takeaway: Understanding Profit & Loss Statement is essential for making informed financial decisions.