What is the meaning of PnL?

The financial result from a business’s operations throughout a selected time period represents the essential pnl meaning which stands for Profit and Loss. A PnL statement commits to presenting financial information which reflects the subtraction between revenue and expenses. The business ends with a profit when expenses remain below revenues while exceeding expenses creates a loss. The Profit and Loss statement allows organizations to assess operational performance and control expenses to generate better strategic choices. The profitability along with sustainability indicators and operational efficiency become clear to investors and stakeholders through their examination of PnL statements. Businesses utilize this important financial measurement to explain their activities during reporting periods.