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PNL stands for "Profit and Loss," a financial statement that summarizes the revenues, costs, and expenses incurred by a business or organization over a specific period, typically a fiscal quarter or year. Also known as an income statement, the PNL provides a snapshot of the company's financial performance by detailing its net income or loss resulting from its operating activities, non-operating activities, and taxes. The PNL begins with the total revenues generated from sales of goods or services, followed by deductions for the cost of goods sold (COGS), which includes expenses directly related to producing or acquiring the products sold. The difference between total revenues and COGS yields the gross profit. Subsequently, operating expenses such as salaries, rent, utilities, marketing, and administrative costs are subtracted from the gross profit to calculate the operating income or loss. Additionally, the PNL may include non-operating income or expenses, such as interest income, interest expense, gains or losses from investments, and taxes. Ultimately, the bottom line of the PNL represents the net income or net loss for the period, reflecting the company's profitability or financial health. Analyzing the PNL enables stakeholders, including investors, creditors, and management, to evaluate the company's performance, assess its ability to generate profits, and make informed decisions about resource allocation, strategic planning, and financial management. Moreover, comparing PNLs over multiple periods allows for trend analysis, identification of potential areas for improvement or cost reduction, and forecasting future financial performance. As a fundamental component of financial reporting and analysis, the PNL provides valuable insights into the revenue-generating and cost-incurred activities of a business, facilitating transparency, accountability, and informed decision-making in the pursuit of sustainable growth and profitability.