Profit and loss statements and business valuations


A Profit and Loss Statement (or P&L) shows the profit (or loss) of a company or entity over a certain period, normally 1 year.

There are five common elements:

  • Revenue less
  • Cost of Goods Sold equals
  • Gross Profit less
  • Expenses equals
  • Net Profit

Please note this information is provided as a guide only.

For more information on the components of a Profit and Loss Statement and their importance visit the Australian Government’s Department of Industry, Innovation and Science site for Business.

An independent business valuation compiled by a professional can help. Contact BIZVAL or order your business valuation today.

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