## Seeing Through a Company’s True Profitability from the P&L Statement—Don’t Be Fooled by Losses
For investors and entrepreneurs, nothing explains the situation better than a clear income statement. **Profit and Loss Statement (P&L), also known as the pre-tax earnings and losses report, is not only a financial department’s working document but also a key reference for investment decisions.**
### Why must every investor understand the P&L?
Many ask: Why bother learning these financial statements? The answer is simple—**a P&L report can directly tell you whether a company is making money or bur
View OriginalFor investors and entrepreneurs, nothing explains the situation better than a clear income statement. **Profit and Loss Statement (P&L), also known as the pre-tax earnings and losses report, is not only a financial department’s working document but also a key reference for investment decisions.**
### Why must every investor understand the P&L?
Many ask: Why bother learning these financial statements? The answer is simple—**a P&L report can directly tell you whether a company is making money or bur