A profit and loss statement, also known as an income statement, is a financial statement that summarizes a company's revenue, expenses, and net income over a specific period of time, such as a quarter or a fiscal year. The purpose of a profit and loss statement is to provide a snapshot of a company's financial performance, highlighting its ability to generate profits or incur losses during the reporting period.

The statement typically includes revenue generated from sales or services, as well as operating expenses such as salaries, rent, and marketing costs. The difference between revenue and expenses represents the company's net income or loss for the period.

Investors, analysts, and other stakeholders use profit and loss statements to evaluate a company's financial health and performance over time. By analyzing trends in revenue and expenses, they can gain insight into the company's profitability, efficiency, and overall financial strength.