The Profit & Loss Statement (Income Statement) Explained

The profit & loss (P&L) statement, also called the income statement, summarises how much a company earned and spent over a period (a quarter or a year) and what profit was left. It reads from the top line (revenue) down to the bottom line (net profit).

Reading it top to bottom

• Revenue (the "top line") — total sales from operations.
• Operating expenses — the costs of running the business.
• Operating profit (EBIT) — revenue minus operating costs.
• Interest & tax — financing costs and taxes.
• Net profit (the "bottom line") — what's left for shareholders.
• EPS — net profit per share.

What to look for

Growth in revenue and net profit over time, stable or expanding margins, and whether profit growth is driven by the core business rather than one-off items. A big one-time gain can inflate a single period's profit without reflecting ongoing performance.

In the data

Every quarterly and annual result exposes these fields. See how to fetch results via API, and remember to compare periods on the same consolidation basis.