ACCOUNTING GLOSSARY
P&L
Profit and Loss Statement
A statement presenting revenue, expenses and profit over a period.
What does P&L mean?
A statement presenting revenue, expenses and profit over a period. Professionals may calculate, document or apply this concept differently depending on the transaction, accounting method, lender policy and governing documents. Borrowers should confirm the precise definition used in any term sheet or agreement.
P&L in context
The lender reviews the company's YTD P&L to assess recent performance.
Why it matters in financing
P&L can influence how a lender, investor or advisor evaluates risk, pricing, structure, repayment capacity or transaction economics. It should be considered together with the complete financial picture rather than used alone.
Related accounting terms
Educational information only. This definition is general, may not match a particular lender or contract, and is not financial, accounting, tax or legal advice.