Profit and Loss (P&L) refers to a financial statement that summarizes the revenues, costs, and expenses incurred during a specific period, typically a fiscal quarter or year. The P&L statement provides insight into a company?s financial performance, helping stakeholders assess profitability and operational efficiency. By analyzing P&L statements, businesses can identify trends, control costs, and make informed decisions regarding investments and resource allocation. The P&L is a crucial component of financial reporting for businesses of all sizes.